Like before, Bitcoin is currently fixed within a stint of sideways trading, striving to secure momentum while hovering at price levels around the $8,800 area. Its performance has been around the area over the previous few days, and it seems to be a crucial support level.
Buyers have stood strongly to protect Bitcoin from a fall beneath this price, but analysts are currently suggesting a move that will favor the bears based on high time frame outlook. At press time, the price of Bitcoin was just about 0.5 percent down at $8,870.
Within the previous 24 hours, the price declined to $8,700 but the bulls resisted and were able to absorb the immense bearish pressure that influenced this movement. There is likelihood that Bitcoin’s reaction to this price level will determine its immediate trend.
It seems traders see a somewhat bleak future for Bitcoin in the near-term, even as one noted that there could be a move to the $5,000 area. A renowned cryptocurrency analyst Cantering Clark posted a chart on Twitter and noted that he is bearish on Bitcoin to either $7,300 or $6,800 until it reveals a buying reaction.
Another trader shared a chart on Twitter in recent times, showing a bleaker outlook for Bitcoin in the mid-term with a target within the $5k zone. His chart shows that BTC’s dip recently has positioned it for a move to its range lows located around the mid-$5k zone. Likewise, the same chart suggests the end of the downtrend, being a remarkable demand area.
Nevertheless, it is necessary to consider several key support regions before this level that may not allow a capitulatory dip. A look at BTC’s chart shows that a remarkable bullish pressure exists close to the lower-$8k zone. A move below it could meet some slight support at $6.5k that may reduce the possibility of more declines. In conclusion, the bulls need to defend the key level ($8,000) to prevent a dip to $5k.