Bitcoin has continued to express stability around its current price levels in the low-$3,600 region. Despite being stable currently, BTC has not been able to garner any buying pressure at its current prices, which may signal technical weakness.
Now, analysts are claiming that Bitcoin may see further losses in the near-term, as its price has not yet seen any surge that would signal that it was previously oversold.
Bitcoin Fails to Find Buying Pressure at Current Price Levels
At the time of writing, Bitcoin is trading down nominally at its current price of $3,625. BTC has been stuck around this price for several days now and has failed on multiple occasions to move any higher.
Although last Friday’s price surge led many traders and analysts to believe that BTC was oversold in the low-$3,000 region, one analyst is now that its inability to continue climbing signals that it was not, in fact, oversold at $3,400, and may continue to drop in the near future.
“Bitcoin continues bouncing around in the upper $3K range. But we saw this same behavior at $9K support, $8K support, $7K, $6K, $5K and $4K. By now the pattern is pretty obvious. Investments that are oversold bounce quickly and sharply from those grossly unjustified levels. The lack of a decisive bounce tells us that bitcoin is not grossly oversold yet. That means lower prices are still ahead of us,” explained Jani Ziedins of the Cracked Market blog while speaking to MarketWatch.
Bitcoin Support Getting Increasingly Weak as it Continues Ranging
Over the past few days, Bitcoin has been caught in a narrowing trading range between $3,550 and $3,630, which has led to a bout of choppy trading within this small trading range.
Analysts seem to concur that Bitcoin will see further losses before finding a region of strong support.
In a recent tweet from Hsaka, a popular cryptocurrency trader on Twitter, he noted that as of now he is cautiously bearish on Bitcoin despite its current involatility.
“$BTC…Haven’t the slightest as to which way this expands… A right proper stalemate as of now, wicks on both sides without any follow through of either… If I was hard-pressed, I’d say I’m leaning towards more downside,” he explained.
Haven't the slightest as to which way this expands.
A right proper stalemate as of now, wicks on both sides without any follow through of either.
If I was hard-pressed, I'd say I'm leaning towards more downside.
Currently short LTC.
— Hsaka (@HsakaTrades)
Hsaka isn’t the only popular cryptocurrency analyst on Twitter who is currently bearish on Bitcoin. TraderArjun recently told his followers that he also expects Bitcoin to break downwards in the near-future, with a downside target currently set in the low-$2,000 region.
“$BTC Watching the price action since we got into this range, this is the probable continuation scenario going forward imo. Would love to hear a technical counter argument for an opposing view to challenge this bias…”
//twitter.com/arjunkkohli/status/87293184
As the cryptocurrency markets enter the weekend, it is unclear as to whether or not they will see increased volatility resulting from lower-than-average trading volume, or if they will continue to trade sideways.
Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.
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