Despite losing the majority of its upwards momentum over the past week, has been able to continue climbing higher and is now approaching the $5,300 level. ’s ability to continue climbing higher despite the lack of major buying volume has been technically positive, but traders are still laying out potential bear scenarios that could lead back down towards $4,000.
One prominent analyst recently explained that he expects to get caught in a sideways range for the weeks to come, which may be disappointing to traders who are anxiously awaiting a big price swing.
bitcoin (BTC) Tepidly Climbs Towards $5,300
At the time of writing, is up less than 1% at its current price of $5,275 and is up slightly from daily lows of $5,230. is currently nearing its highest price level over the past seven days and has firmly established $5,000 as a strong level of support.
It is important to note that the is currently just a below a key resistance level at $5,400 that has held strong ever since first surged earlier this month. On April 10th, incurred a sudden influx of buying pressure that allowed it to surge to just above the aforementioned resistance level before facing strong selling pressure that pushed it to lows of $5,000.
This price action appears to have led to the creation of a fresh between roughly $5,000 and $5,400, which may continue to hold strong for the foreseeable future.
Josh Rager, a popular analyst on Twitter, spoke about this possibility in a recent tweet, explaining that he expects to stay caught in a relatively tight range for “weeks to come.”
“The longer $ ranges between $5,000 to $5,200, the stronger support it becomes after the next push up. Though this equally becomes a stronger resistance if a breakdown occurs. IMO, likely stays in the price range of this chart for weeks to come,” he explained.
The longer ranges between $5,000 to $5,200, the stronger support it becomes after the next push up
Though this equally becomes a stronger resistance if a breakdown occurs
IMO, likely stays in the price range of this chart for weeks to come
— Josh Rager 📈 (@Josh_Rager)
This bout of sideways may ultimately prove to be overwhelmingly positive for individual , as many have already been able to surge despite ’s current lull.
Analyst: Bear Scenario Could Bring bitcoin Down Towards $4,000
Although may presently look strong, if the crypto’s bears are able to push it below $5,000, it may continue dropping until it reached the low-$4,000 region.
Bagsy, another popular trader on Twitter, pointed towards a Wyckoff Distribution pattern to illustrate the possible bear scenario for , noting that a drop below $5,000 could bring the back down towards $4,000 – erasing virtually all the gains it has incurred over the past few weeks.
“$ Wyckoff Distribution: Warning, the following image contains graphic content. This is something I spotted, doesn’t mean it’s going to happen for those getting nervous, but it was worth pointing out,” he explained.
Wyckoff Distribution:
Warning, the following image contains graphic content. This is something I spotted, doesn’t mean it’s going to happen for those getting nervous, but it was worth pointing out. Big thanks to for helping me iron out the structure.
— Bagsy (@imBagsy)
Only time will tell as to whether or not will get caught in a range for the next few weeks, but in the meanwhile, traders will likely turn to various in order to maximize their profitability.
Featured image from Shutterstock.
Published at Fri, 19 Apr 2019 01:13:04 +0000
