Bitcoin has been able to continue its slow upwards ascent and is now tepidly advancing towards $5,400, which has historically proven to be a strong level of resistance that BTC has failed to break decisively above since it first began surging earlier this month.
Now, one prominent crypto analyst believes that Bitcoin’s fractal patterns may signal that it will drop towards $4,600 before incurring significant buying pressure that will send it surging up towards $6,800.
Bitcoin (BTC) Slowly Approaches $5,400
At the time of writing Bitcoin is trading up less than 1% at its current price of $5,340 and is up slightly from its 24-hour lows of $5,280.
Bitcoin has been slowly grinding higher over the past seven days, climbing from lows of $5,000 to its current price levels. This upwards climb has led many investors to flip bullish on the cryptocurrency, as its current stability does appear to be very positive.
Despite this, The Cryptomist, a popular crypto analyst on Twitter, explained that she is leaning bearish on BTC in the near term as it is currently forming a rising wedge pattern that may lead to a breakdown.
“$BTC Fibs on the RSI and candle upon the daily are still reacting well. Additionally, we have formed a rising wedge here on 4hr, which typically leads to breakdown. This is only invalidated if 5390 can be broken and sustained,” she explained in a recent tweet.
BTC May Drop Lower Before a Fresh Rally Begins
Other analysts seem to concur with The Cryptomist’s cautiously bearish assessment of Bitcoin, as its fractal patterns may be signaling that further losses are necessary in order for the cryptocurrency to surge higher.
Galaxy, another popular crypto analyst on Twitter, discussed this possibility in a recent tweet, saying that BTC may drop towards $4,600 before it incurs enough buying pressure to send it surging up to $6,800.
“Based on this daily fractal we should get another chance to buy $BTC at $4600-$4800 levels before the next run to $6800. Similarities in both candles and volume,” he said.
Although it remains unclear as to whether or not the crypto markets will incur any noteworthy volatility during the weekend trading session, it is highly probable that traders will gain a better idea of where the markets are heading next as the fresh week kicks into gear.