After previously finding some support within the lower-$8,000 region, Bitcoin (BTC) is once again revisiting this level and appears to be in growing jeopardy of plummeting back into the $7,000 region.
Despite this current bearishness, one prominent analyst and an outspoken Bitcoin bull is now noting that there is still a strong bullish case for BTC in the near-term, but he is also noting that the crypto may continue expressing weakness as the global economy expresses instability.
Bitcoin Dips Towards $8,000 as Bears Gain Edge Over Bulls
At the time of writing, Bitcoin is trading down roughly 1% at its current price of $8,070, which marks a retrace from its recent highs of nearly $8,300 that were set yesterday.
Bitcoin’s inability to garner any upwards momentum since plummeting into the $7,000 region signals that it may not be oversold at the moment, as buyers have not yet decided to take advantage of the dip and may be waiting for it to drop lower before they jump in.
Importantly, analysts are noting that there still is a chance that Bitcoin could see some near-term bullishness, as Josh Olszewicz, a popular crypto analyst on Twitter, explained in a recent tweet that BTC could be currently forming a bullish inverse head & shoulders pattern that could lead it up towards $8,750.
“1h $BTC: iHS brewing w/e2e potential,” he explained while further cautioning that the “probability this works out is likely negative infinity considering current market action.”
Josh Olszewicz
@CarpeNoctom
1h $BTC
iHS brewing w/e2e potential
probability this works out is likely negative infinity considering current market action
View image on Twitter
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Because BTC has not been able to incur any upwards momentum and is now sitting just a hair above its key near-term support level at $8,000, it is highly likely that this bullish possibility has been invalidated.
By: Cole Petersen