Bitcoin incurred a significant amount of buying pressure yesterday that allowed it to surge past $5,600, which instantly made many investors and analysts alike to flip bullish on the cryptocurrency. Despite this, BTC was unable to hold support at this price level and has since fallen into the $5,400 region.
Now, one analyst believes that Bitcoin is close to being ready to form another leg up, on the condition that it is able to garner a strong buying reaction if it is to dip into the $5,300 region.
Bitcoin (BTC) Fails to Find Support at $5,600
At the time of writing Bitcoin is trading down roughly 2% at its current price of $5,490. On Monday, Bitcoin incurred a relatively large amount of buying pressure that pushed its price to the mid-$5,600 region, at which point it faced increased selling pressure that drove its price back down to its current levels.
It is important to note that BTC is still trading up from its weekly lows of $5,230 and is just slightly below its one-month highs of $5,650, which were set yesterday.
UB, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s current price action, explaining that he is closely watching to see how BTC responds to the $5,300, as a strong reaction to this price level may allow the crypto to form another leg up.
“$BTC – I’m leaning towards another leg up if there’s a strong reaction from the ~$5300 area. If there’s a bounce before then, I may be interested in taking a short position from ~$5530 for a day trade. Whichever scenario happens, the end goal is the same ($5300),” he explained in a recent tweet.
Another interesting pattern to note is that BTC is closely hugging an ascending trendline, which may lead it to climb higher in the near-future.
“$BTC hugging this trendline, in play since the April breakout,” Alex Krüger, a popular analyst and economist who focuses primarily on cryptocurrencies, noted in a recent tweet.
BTC May Still Be on Track for a Move Into the $6,000 Region
Although Bitcoin’s slow upwards grind is leading many analysts to have conflicting opinions as to which direction the cryptocurrency is heading next, it may still be able to surge into the $6,000 region before incurring any significant selling pressure.
Josh Rager, another popular analyst on Twitter, discussed this possibility in a recent tweet, explaining that BTC may climb as high as $6,400 before retracing.
“$BTC – possible scenario: Bitcoin continues to make its way up to the peak interest area at $6400+. Lots of historical volume at this level and would create peak fomo. This is where people who bought previously at $6k have the opportunity sell to fomo buyers before a retrace,” he said.
As the week continues on, it is likely that analysts will begin forming a general consensus as to where Bitcoin is heading next, and as to whether or not the persisting bear trend is truly over, or if further losses are imminent.