Bitcoin and the aggregated crypto markets are currently coming off of a period of large volatility that appears to have put the entire market’s recently established upwards momentum in danger of being lost. Since incurring significant selling pressure over the past couple of days, however, Bitcoin (BTC) has been able to stabilize in the upper-$7,000 region.
Despite this short-term stability, analysts believe that Bitcoin is still vulnerable to further losses in the near future.
Bitcoin (BTC) Slows Downwards Descent After Finding Support Around $7,500
At the time of writing, Bitcoin is trading down roughly 4% at its current price of $7,683, but is still up slightly from daily lows in the $7,500-region, which is where the cryptocurrency found some levels of support that helped slow its descent that was sparked a couple of days ago.
Despite this, the latest dip may have simply been a follow through of a bearish technical formation that was formed previously, which may mean that the crypto will soon retest its next notable resistance level around $8,500.
Big Cheds, a popular cryptocurrency analyst on Twitter, discussed this possibility in a recent tweet, saying:
“$BTC #Bitcoin – This move down to $7500 took care of that bearish divergence (from $8700+) and now the slope of OBV matches price. If you believe in the rising wedge break, then no reason this can’t back test and get rejected at $8500.”
“$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400. 6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level,” he explained.