The latter part of 2019 has been a volatile several months for Bitcoin, with the embattled cryptocurrency ranging between lows of $6,500 and highs of over $10,000. Currently, BTC is trading at the lower part of this trading range, and it has been struggling to gain any decisive momentum in either direction.
This lack of momentum may spell some trouble for the cryptocurrency, however, as analysts are noting that the faltering buying pressure in combination with technical weakness may lead Bitcoin’s price significantly lower.
Bitcoin Inches Lower, Finds Support at $7,200
At the time of writing, Bitcoin is trading down marginally at its current price of $7,315, which is around where the crypto has been trading at over the past couple of days.
This short-term period of sideways trading may not last long, however, as it is highly probable that the cryptocurrency will soon make a big movement, as bouts of consolidation in these markets are often short lived and followed by trend-defining movements.
As for where this next movement may lead BTC, analysts do believe that bears will prevail as the winners and will send the cryptocurrency reeling down to the $6,000 region.
TraderXO, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that he is first targeting $6,500, which he believes will be followed by another drop down to $6,000.
“$BTC: Back to looking for short first position opened at 7280s. Asks all the way up Targeting 6.5 then 6k,” he noted while pointing to the chart seen below.
What Factors May Contribute to this Potential BTC Drop?
There are multiple factors that support TraderXO’s current bearishness, and Cantering Clark – another popular cryptocurrency analyst – mused a few of these important factors in a recent tweet.
Primarily, he points to the dwindling bids and lack of any sustainable upwards momentum as reasons why BTC may soon see further downside.
“$BTC looking like it is starting to find acceptance lower. Below weekly value area low, monthly value area low, and daily value area low. Bid starting to drop off as well. Will bulls try to keep this up one more time or are we on to find a new ground to start this over?” He explained while referencing the below chart.
The coming few hours and days will likely offer significant guidance to investors and analysts as to where Bitcoin and the aggregated crypto markets will go next.