Despite facing some levels of volatility over the past week, Bitcoin has now been able to find some stability and is hovering right below the $8,000 level. It is important to note that BTC does face some levels of resistance in the lower-$8,000 region, as it has tried, and failed, on multiple occasions to climb above this region.
Although Bitcoin is clearly in the middle of an uptrend, it is important to note that there is a large chance that a drawback is imminent, and one analyst believes that there may be a 30%+ drop in the near future.
Bitcoin (BTC) Continues to Stabilize in Upper-$7,000 Region
At the time of writing, Bitcoin is trading up 0.6% at its current price of $7,970, up slightly from 24-hour lows of roughly $7,800, which were set earlier this morning when the cryptocurrency incurred some increased selling pressure.
It now appears that Bitcoin has formed some levels of support around $7,800, as it has bounced around this price point on multiple occasions over the past several days.
While looking at BTC over a one-month period, it is clear that it is currently forming a consolidation pattern around its current price levels, which may or may not be proceeded by the formation of another upwards leg.
Importantly, analysts do believe that Bitcoin’s next stop may be at $10,000, assuming the cryptocurrency is able to further extend the upwards momentum that it has incurred over the past month.
Cred, a popular cryptocurrency trader on Twitter, discussed where BTC could possibly head next in a recent tweet, explaining that he is not currently bearish on the crypto, and believes that it could soon climb to roughly $10,000.
“$BTC I believe the 3D chart presents the clearest HTF view. Established a range between two levels. I have no reason to turn bearish yet – even if this range breaks down I’ll be a buyer at mid 6000s (where we last wicked). Breakout would take us to roughly $10,000,” he explained in a recent tweet.
I believe the 3D chart presents the clearest HTF view.
Established a range between two levels.
I have no reason to turn bearish yet – even if this range breaks down I’ll be a buyer at mid 6000s (where we last wicked).
Breakout would take us to roughly $10,000. pic.twitter.com/ZoYDYK4eBf
— Cred (@CryptoCred) May 21, 2019
Despite Its Upwards Momentum, BTC May Incur Several Large Pullbacks Before Going Parabolic
It is important to note that in the early stages of previous bull runs, Bitcoin has incurred multiple drawbacks that have pushed its price down over 30%. Because of this, there is a high likelihood that there will be multiple opportunities going forward for traders to accumulate more of the cryptocurrency.
Josh Rager, another popular crypto analyst on Twitter, pointed this out in a recent tweet, explaining that in the past bull run there were at least nine instances of BTC reeling down 30% or more, despite its firm upwards momentum.
As the week drags on and Bitcoin continues battling to breach into the $8,000 region, it will likely grow clearer as to whether or not a large pullback is imminent, or if a surge to $10,000 in the cards.