- Bitcoin remains relatively stagnant over the past day
- Bitcoin finds strong support at the lower-$8k range
- The next major downtrend could push Bitcoin towards $5k – Trader
Bitcoin News Today – Bitcoin has been trapped below the $9k level over the past couple of days. The digital currency has been struggling to amass traction to break over the $8,800 zone. Bitcoin has been caught within a session of sideways trading and it seems to have found a critical support level.
Buyers have been doing their best to prevent further downtrends. However, analysts are pointing out that the high timeframe outlook of Bitcoin seems to favor sellers greatly. One crypto analyst went as far as saying that the digital currency might plunge towards the $5k region.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Remains Trapped around $8,800 with No Major Upside or Downside Move
At press time, the world’s most dominant digital currency is changing hands at $8,852 after a decrease of less than one percent. A few hours ago, the digital currency plunged to the low of $8,700 before buyers showed up and absorbed the immense selling pressure that triggered the movement. Bitcoin is currently at a crucial level, and how it reacts to this level will determine which direction it will trend in next.
It appears that traders do not believe that the near outlook of the digital currency is too bright. Nevertheless, a popular digital currency analyst – Cantering Clark – recently said that he is now focused on shorting Bitcoin until it posts a bullish reaction to either $7,300 or $6,800. While pointing to a chart, the analyst said:
“Likely done with any longs outside of intraday plays, i.e. longer swing positions, until we put in some type of strong PA down in blue. Bitcoin is pretty formulaic, lose black and you are coming down to ugly numbers.”
The Downtrend Could Push Bitcoin towards $5k – Trader
Another digital currency trading recently gave his opinion on the medium-term outlook of Bitcoin. The trader pointed to a chart, showing a target within the $5k region. The chart of the analyst seems to be indicating that the downtrend will stop at the $5k region, as it is a major demand territory.
It is crucial to note that there are several major support levels before the $5k region that could prevent the digital currency from experiencing a capitulatory decline. There is important Bitcoin buying pressure around the lower-$8k zone. If the digital currency break below that region, it could find slight support at the $6,500 region that could prevent further declines.
However, that support level seems week. This means that if the bulls fail to hold the $8k region the next major decline might send the price of the digital currency towards the $5k region.