Traders do seem to believe that this next movement will favor bears, as the benchmark cryptocurrency has yet to visit its equal lows on popular cryptocurrency trading platform Bitmex, which means a drop to this level could be imminent.
Bitcoin Attempts to Stabilize Above $7,000 But Analysts Eye Weakness
Bitcoin is currently trading up just over 4% at its current price of $7,050, which marks a notable climb from recent lows of under $6,800 that were set yesterday when the cryptocurrency hovered around this level for an extended period of time.
The response to the support that has been established around this level is certainly a bullish sign in the near-term, although Bitcoin still remains somewhat technically weak as long as it remains below its resistance at $7,200 and $7,500.
$7,200 is where the cryptocurrency had found some notable support when it was engaged in a consolidation phase within the lower $7,000 region, with it finding strong resistance at $7,500.
Analysts don’t seem to expect that these levels will be surmounted yet, as one prominent trader named Mac recently noted that he anticipates BTC to visit its equal lows on Bitmex at $6,600 before it is able to climb any higher.
“Equal lows $6600 – mex. Don’t think I have ever seen equal lows left untaken so yeah we going there now or later,” he noted.
Equal lows $6600 – mex.
Don’t think I have ever seen equal lows left untaken so yeah we going there now or later
— Mac 
(@MacnBTC) April 12, 2020
While looking at the chart he referenced in the prior tweet, it does appear that he anticipates the crypto to see a bullish rebound from this level.
Analyst: BTC Buy Walls Suggest Large Players Are Entering the Market
Red – a highly respected crypto trader – explained in a recent tweet that the massive Bitcoin buy and sell walls it is currently facing seems to suggest that one, or multiple, major players have decided to hop back into the market.
“My take on the massive walls is the decision to hop back into the market by one or a couple players. Anyway, these bear pennants tend to trap shorts, it’s also sunday… you know the drill. I’d reckon we see slightly above this pennant, around 7k for OKF, ~7070 on Mex,” he said.
My take on the massive walls is the decision to hop back into the market by one or a couple players.
Anyway, these bear pennants tend to trap shorts, it’s also sunday… you know the drill. I’d reckon we see slightly above this pennant, around 7k for OKF, ~7070 on Mex. $BTC pic.twitter.com/nDeD7c2mwf
— red (@redxbt) April 12, 2020
This seems to insinuate that Bitcoin could push higher as bulls attempt to trap shorts, which could be followed by a sharp decline.
Featured image from Unsplash.