Bitcoin has once again incurred a sudden influx of buying pressure that has allowed it to continue climbing higher after briefly dipping as low as $7,500 over the past couple of days. Although BTC’s surge back above $8,000 is certainly positive, it is still struggling to move higher as it faces strong selling pressure around its current price.
Analysts are now noting that Bitcoin must continue to surge and decisively close above $8,200 or else the cryptocurrency’s bullish momentum may stall, leading to another pullback.
Bitcoin Tepidly Advances Past $8,000
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $8,070, up significantly from its recent lows of $7,500 which were set this past Thursday.
Because Bitcoin reacted strongly to this sharp move towards $7,500 and has been on the up and up ever since, it is highly likely that this will become a strong level of support for BTC in the near-term.
Although BTC has once again moved into the $8,000 region, it is important to note that it has not been able to break above its next resistance level that exists around $8,200, and a failure to close above this level could mean that further losses are imminent.
Josh Rager, a popular cryptocurrency analyst on Twitter, discussed the importance of the $8,200 level in a recent tweet, explaining that a failure to climb above this level could lead to further losses in the near-future.
“$BTC Update: Meme triangle currently holding Bitcoin in same formation. Pair with horizontals to see big picture, want to see Bitcoin close above $8203 on daily to feel bullish. Otherwise, consolidation continues and is natural after a strong price push up over past few months,” he explained in a recent tweet.
Analyst: Large BTC Price Movement Could be Imminent
Because Bitcoin is once again nearing a key price region, there is a strong possibility that it will make a large price move in the near-future.
Chonis Trading, another popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, noting that he expects the crypto to make a big move tomorrow based on its fractal formations.
“$BTC – ‘Fib Time Zones’ have been pointing to a major #bitcoin move on May 25th which is tomorrow,” he said.
Mati Greenspan, the senior market analyst at eToro, echoed a similar sentiment, noting that he believes a small $200 move could lead to a much bigger price movement.
“At this point, a $200 move in the price of bitcoin could easily lead to a move of $2,000,” Greenspan said in a tweet.
As the weekend kicks into gear and traders determine whether or not BTC is able to move above its resistance level around $8,200, traders will likely gain better insight into whether or not Bitcoin will be able to continue climbing higher in the near future.