Bitcoin (BTC) has kicked off the weekend trading up slightly but has still been unable to decisively move above $4,000, which has proven to be a key psychological resistance level for the cryptocurrency.
Although Bitcoin has been able to climb consistently for the past several days, analysts now expect the cryptocurrency to fail to break above $4,000, which will likely lead the cryptocurrency to incur further losses in the near-future.
Bitcoin Stable Above $3,900, But May be Losing Steam
At the time of writing, Bitcoin is trading up 0.4% at its current price of $3,950. Since earlier this week, BTC has been able to hold steady above $3,900, but it has failed to garner any significant buying pressure that could propel it above the key psychological price level of $4,000.
Late yesterday, BTC fell sharply to lows of $3,880 before quickly surging to its current price levels. This price action may signal that the crypto has established the upper-$3,800 as a level of relative support.
Although Bitcoin has been steadily climbing over the past several days, analysts still expect the cryptocurrency to incur greater selling pressure in the near future.
The Cryptomist, a popular cryptocurrency analyst on Twitter, recently explained that Bitcoin is currently caught in a rising wedge that it is likely to break below in the near-future.
“$BTC This is what I am seeing right now… Rising wedge, and a bearish divergence on the 4hr… I do expect us to drop from this wedge… Remember to ladder in profits from your current alt positions.”
Analyst: Bitcoin Likely to Drop Unless it Can Establish $3,920 as a Support Level
Other popular analysts are currently echoing a similarly bearish sentiment to The Cryptomist, as UB – another popular analyst on Twitter – recently explained that he expects Bitcoin to continue facing increased selling pressure until it is able to firmly establish its current price region as a strong level of support.
“$BTC – My shorts are beginning to fill. I’m not interested in closing my short position until Red ($3920 – $3940) is established as support… Regardless of the bullishness in the air, price is still at resistance.”
Over the past couple of months, the crypto markets have generally incurred increased levels of volatility during weekends, which may mean that analysts and traders alike may soon gain greater insight into which direction the markets are heading next.