Much to the chagrin of Bitcoin’s bulls, the cryptocurrency has remained in a firm downtrend over the past several weeks, which has now resulted in BTC pushing up against its key near-term support level, with a break below this price opening the gates to significantly further losses.
Interestingly, one distinguished crypto-focused analyst is currently noting that Bitcoin’s recent value action is strikingly almost like that seen throughout the 2014-2015 market, that might mean that it'll see considerably additional losses within the coming weeks and months before it establishes along the bottom.
At the time of writing, Bitcoin is trading down over 7 % at its current value of $6729, that marks a colossal drop from its weekly highs of nearly $9,000 and a major extension of the pessimistic momentum that was sparked once it didn't stabilize over $10,000 in late-October.
Bitcoin has found notable support among the upper-$6,000 regions over the past few days, however, it remains unclear on whether or not this support can still exist as BTC tests this level once more within the coming hours and days.
TradeX0, a well-liked cryptocurrency analyst on Twitter, explained during a recent tweet that he believes BTC is positioned for a movement to the $5,000 region within the near-term, that is wherever its next major price exists. He noted while referencing the chart seen below:
“$BTC – Weekly Outlook: 7 weeks in and the 5k levels I believed the price would trade at looks to be coming to fruition. Looking for any significant swing shorts around the low to mid 7’s – before trading towards the range lows and fill in the inefficient gap,”
Further adding to Bitcoin’s current bearishness is that the risk that it is presently expressing worth action strikingly almost like that seen throughout the 2014 market, that might mean that considerably additional losses are imminent.
TraderX0 also spoke regarding this risk in a tweet, telling his followers that there are clear similarities between the cryptocurrency’s current worth action and that seen many years ago, that might spell trouble for where it heads next.
“$BTC – Yeah probably was nothing… Don't worry about it,” he sarcastically quipped while comparing the similarities between crypto’s price action over the two time periods in the chart below.
If Bitcoin continues dropping lower in the near-term, it is highly probable that it will face further selling pressure in the coming months before it establishes a long-term bottom.
Bitcoin, currently ranked #1 by market cap, is down 6.59% over the past 24 hours. BTC has a market cap of $124.24B with a 24-hour volume of $37.22B.