Bitcoin has continued to remain firmly in control of the its bears, as BTC has failed to garner and maintain any upwards momentum over the past several weeks, signaling that it may see significantly further downside in the near-term.
Analysts are now noting that a failure for it to maintain above its immediate support level could spark significantly further losses that could lead it as low as $5,800 in the near-term, which would mark a massive retrace from its recent highs of $10,600.
Bitcoin Nears Critical Support Level as Bears Attempt to Spark Massive Drop
At the time of writing, Bitcoin is trading down nearly 3% at its current price of $7,100, which marks a slight climb from its multi-day lows of $6,700 that were set during its latest sell-off, but its strong bounce from this level has begun to lose its momentum – meaning that further downside could be inbound.
BTC’s ongoing downtrend was first sparked when it failed to maintain the momentum it garnered when it surged to highs of $10,600 in late-October, and its inability to maintain this momentum may point to underlying weakness amongst the crypto’s buyers.
In the near-term, BTC’s next key support level currently exists at $6,400, which may be the region that sparks the next bull rally to $11,000, according to one prominent analyst.
The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet while referencing a large falling wedge that BTC is currently trading within.
“$BTC: Reaching last months wedge apex. Support is at $6.4k. Breakout will be glorious run to $11k,” she noted while referencing the chart seen below.
Reaching last months wedge apex
Support is at $6.4k
Breakout will be glorious run to $11k ☺️ pic.twitter.com/gQ6L0aRFj1
— The Cryptomist (@TheCryptomist) November 24, 2019
Will BTC Breakdown Perpetuate a Movement to $5,800?
Although The Cryptomist believes that BTC will find enough support at $6,400 to spark a bull rally, other analysts believe that the crypto could soon see a movement to the upper-$5,000 region.
CryptoBirb, another popular analyst on Twitter, spoke about this in a recent tweet, telling his followers that a daily close below $7,300 could lead the embattled cryptocurrency to drop to $5,800.
“$btc weekly. close above 7.3k -> targets 7.9k; 8.35k (decent short entry) (MA50/100 held this way). close below 7.3k -> 5.8-6.2k (decent DCA MTF longs). I still rather zoom out and play the big picture,” he noted while pointing to the chart seen in the below tweet.
close above 7.3k -> targets 7.9k; 8.35k (decent short entry) (MA50/100 held this way)
close below 7.3k -> 5.8-6.2k (decent DCA MTF longs)
I still rather zoom out and play the big picture👊 pic.twitter.com/YcB09P3Gzq
— Crypto₿irb (@crypto_birb) November 24, 2019
The coming few hours and days may prove to be quite illuminating, as how Bitcoin responds to its immediate support level at $7,000 could set the tone for where the crypto heads in the coming weeks and months.
Featured image from Shutterstock.