The crypto markets are currently expressing some levels of stability after experiencing significant selling pressure yesterday that put Bitcoin’s foothold in the $8,000 region in jeopardy. It now appears that BTC does have some levels of buying support in the upper-$7,000 region, although it is unclear if this will be enough to support the price long-term.
Although many analysts have been advocating that traders and investors buy each dip while Bitcoin is in a firm uptrend, this dip may be different, as multiple analysts are now explaining that they do not believe traders should buy in just yet.
Bitcoin Tumbles Below $8,000 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 6% at its current price of $8,000 and is up slightly from its recent lows of $7,900, which were set late yesterday.
This selling pressure that was incurred yesterday was likely a continuation of the instability that BTC incurred last Thursday when it quickly moved up to $9,000 before facing strong selling pressure that sent it reeling lower.
It is important to note that Bitcoin is still up significantly from its one-month lows of roughly $5,500, and it does seem as if it is still in a clear uptrend.
Despite this, analysts are now cautioning investors against buying the current dip, which could be a bearish sign.
Cantering Clark, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, noting that BTC’s declining momentum and buying pressure both serve as support for the notion that further downside is inevitable.
“I strongly disagree with anyone that is under the impression that this dip is currently one worthy of purchase. The tapering off of both momentum and buying pressure prior to this leaves me to believe that probability is in favor of further downside,” he explained.
Analysts Expect BTC to Face Further Downside
Clark is not alone in his bearish assessment of Bitcoin in its current state, as other analysts also believe that the crypto may face further downside in the near future.
Josh Rager, another popular cryptocurrency analyst on Twitter, explained that he believes the strong volume behind the latest downwards move likely signals that BTC will face further downside, even if it stabilizes around its current price levels for a short period of time.
“$BTC People have asked if that was short term sell off and the price is heading back up. Due to the amount of volume, it’s more likely price has short term relief that can last hours or days before another push down to retest support,” he said.
As Bitcoin continues to struggle to garner any noteworthy buying pressure around its current price levels, it is highly probable that it won’t be long before traders and analysts alike gain a better understanding of where BTC and the aggregated markets are heading next.