Bitcoin (BTC) and the aggregated crypto markets have been facing a bout of sideways trading over the past couple of days, oscillating between the mid-$7,500 region and the lower-$8,000 region for the past several days.
Although the sideways price action could simply be a pattern of consolidation that ultimately leads to an extension of upwards momentum, one analyst is now noting that a failure to close above $8,000 today could lead to a continuation of its downwards momentum for the week ahead.
Bitcoin Struggles to Stabilize Above $8,000 After Bout of Choppy Trading
At the time of writing, Bitcoin is trading down less than 1% at its current price of $7,950 and is down slightly from its daily highs of over $8,100.
It does appear that BTC has been able to find some levels of support around its current price levels, as it has bounced around this price level on several times over the past 24-hours, which may signal that it will be able to climb higher as the day goes on.
Despite this, if Bitcoin is unable to close above $8,000, it may begin incurring increasing selling pressure that could send its price reeling back to the lower $7,000 region, which could put the recently established rally in peril.
Josh Rager, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, explaining that a break above $8,200 today could lead to further bullish momentum tomorrow, but a close below $8,000 could lead to a rough week ahead for the cryptocurrency.
“$BTC Update: Sitting at horizontal support and mid-channel support. Still trending down in the channel, a break above $8200 would be nice for weekly close Sunday night. If Bitcoin closes under $8000 I see downward continuation this coming week, IMO,” Rager said in a recent tweet.
Sitting at horizontal support and mid-channel support
Still trending down in the channel, a break above $8200 would be nice for weekly close Sunday night
If Bitcoin closes under $8000 I see downward continuation this coming week, IMO pic.twitter.com/kacz17KhKH
— Josh Rager 📈 (@Josh_Rager) June 8, 2019
BTC Still Faces Strong Resistance That May Temper Any Bullish Price Action
Assuming that the cryptocurrency’s bulls step up and hold its price above $8,000, it still faces several levels of strong resistance that may stop it from surging too much higher in the near future.
Trading Room, another popular crypto analyst, explained this in a recent tweet, noting that BTC’s next level of strong resistance exists around $8,300, which may prove to be a difficult level to break above.
“#Bitcoin Latest: 200 MA in H4 provided temporary floor & sent $BTC price back above 8000 (As expected), However that doesnt mean moon. We still need to break some more Resistance, if not expecting a slow grind lower towards 7450 & onwards to 6900 Area,” Trading Room explained.
200 MA in H4 provided temporary floor & sent $BTC price back above 8000 (As expected), However that doesnt mean moon. We still need to break some more Resistance, if not expecting a slow grind lower towards 7450 & onwards to 6900 Area
— Trading Room (@tradingroomapp) June 7, 2019
As the weekend drags on it is highly probable that Bitcoin’s near-term price action will set the tone for the week ahead.
Featured image from Shutterstock.