Bitcoin (BTC) Tepidly Climbs Towards $5,300
At the time of writing, Bitcoin is trading up less than 1% at its current price of $5,275 and is up slightly from daily lows of $5,230. BTC 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 cryptocurrency is currently just a hair below a key resistance level at $5,400 that has held strong ever since BTC first surged earlier this month. On April 10th, Bitcoin 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 trading range between roughly $5,000 and $5,400, which may continue to hold strong for the foreseeable future.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, explaining that he expects BTC to stay caught in a relatively tight trading range for “weeks to come.”“The longer $BTC 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, Bitcoin likely stays in the price range of this chart for weeks to come,” he explained.//twitter.com/josh_rager/status/37784576 This bout of sideways trading may ultimately prove to be overwhelmingly positive for individual cryptocurrencies, as many have already been able to surge despite BTC’s current lull.
Analyst: Bear Scenario Could Bring Bitcoin Down Towards $4,000
Although Bitcoin 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 cryptocurrency trader on Twitter, pointed towards a Wyckoff Distribution pattern to illustrate the possible bear scenario for Bitcoin, noting that a drop below $5,000 could bring the cryptocurrency back down towards $4,000 – erasing virtually all the gains it has incurred over the past few weeks.“$BTC 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 (@Bagsy)
Only time will tell as to whether or not BTC will get caught in a trading range for the next few weeks, but in the meanwhile, traders will likely turn to various altcoins in order to maximize their profitability.
Featured image from Shutterstock.