After previously finding some support within the lower-$8,000 region, Bitcoin (BTC) is once again revisiting this level and appears to be in growing jeopardy of plummeting back into the $7,000 region.
Despite this current bearishness, one prominent analyst and an outspoken Bitcoin bull is now noting that there is still a strong bullish case for BTC in the near-term, but he is also noting that the crypto may continue expressing weakness as the global economy expresses instability.
Bitcoin Dips Towards $8,000 as Bears Gain Edge Over Bulls
At the time of writing, Bitcoin is trading down roughly 1% at its current price of $8,070, which marks a retrace from its recent highs of nearly $8,300 that were set yesterday.
Bitcoin’s inability to garner any upwards momentum since plummeting into the $7,000 region signals that it may not be oversold at the moment, as buyers have not yet decided to take advantage of the dip and may be waiting for it to drop lower before they jump in.
Importantly, analysts are noting that there still is a chance that Bitcoin could see some near-term bullishness, as Josh Olszewicz, a popular crypto analyst on Twitter, explained in a recent tweet that BTC could be currently forming a bullish inverse head & shoulders pattern that could lead it up towards $8,750.
“1h $BTC: iHS brewing w/e2e potential,” he explained while further cautioning that the “probability this works out is likely negative infinity considering current market action.”
1h $BTC
iHS brewing w/e2e potential
probability this works out is likely negative infinity considering current market action pic.twitter.com/sv4cRyaYSS
— Josh Olszewicz (@CarpeNoctom) September 29, 2019
Because BTC has not been able to incur any upwards momentum and is now sitting just a hair above its key near-term support level at $8,000, it is highly likely that this bullish possibility has been invalidated.
BTC May Remain Stagnant Until Global Economy Begins Trending
Thomas Lee, the co-founder of Fundstrat Global Advisors, explained in a recent tweet that it is not unusual for Bitcoin to trade sideways or even incur a slight downtrend before posting massive gains, as BTC historically incurs the majority of its gains over a 10-day period.
“Before everyone starts freaking out whether crypto winter is over, remember the @fundstrat ‘rule of 10 best days’ (rule #6) – ex-10 best days, #bitcoin down 25% per year. All the gains come in 10 days. Are u that good at trading? PS: we believe $BTC is weak in trendless macro,” he noted while referencing his theory that BTC will struggle while the global economy trends sideways.
Before everyone starts freaking out whether crypto winter is over, remember the @fundstrat ‘rule of 10 best days’ (rule #6)
– ex-10 best days, #bitcoin down 25% per year. All the gains come in 10 days. Are u that good at trading?
PS: we believe $BTC is weak in trendless macro. pic.twitter.com/zzDOfPjVBq
— Thomas Lee (@fundstrat) September 28, 2019
The coming hours and days will likely elucidate Bitcoin’s mid-term trend, as a failure to post a swift and decisive bounce in the near-term could spell trouble for its mid-to-long term outlook.
Featured image from Shutterstock.
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