Bitcoin has been able to maintain relative levels of stability over the past weekend, despite an unfolding trend where BTC incurs larger levels of volatility during weekend trading sessions.
Although Bitcoin is currently stable above $3,900, many analysts are still weary of its current price action, and one analyst believes a drop below BTC’s 2018 lows of $3,200 is inevitable.
Bitcoin Stable Above $3,900, But Fails to Break Above $4,000
At the time of writing, Bitcoin is trading down marginally at its current price of $3,940. After experiencing some volatility last weekend, BTC was able to gradually climb towards its current price levels but continues to face significant resistance around $4,000.
UB, a popular cryptocurrency analyst on Twitter, recently explained that BTC’s current price region is proving to be a level of relative resistance, and that a break above this level could lead the cryptocurrency’s price up towards the $4,200 region.
“If Bitcoin can break this $3940 area it will be a relatively clear run to $4250 at least. Though, as long as $3550 and $3350 remain untested I’m cautious about every move up.”
In late-February, Bitcoin’s price spiked to highs of $4,200 before incurring significant selling pressure that sent its price spiraling down towards $3,800. This price action confirmed that $4,200 is a strong level of resistance for the cryptocurrency.
Could a Drop to $1,800 Be Possible?
Although BTC clearly has strong support at its 2018 lows in the low-$3,000 region, there may be a case to be made for a drop to as low as $1,800.
Bleeding Crypto, another popular analyst on Twitter, recently laid out his case for why a significant drop may still be in the cards for BTC, noting that a move to above $4,200 would fill the CME Futures gap, which could lead the crypto to spiral downwards before it finds strong support in the low-$2,450 region.
“$BTC Some of you have asked for a chart on why I am calling $2400 – $3100 drop with a possible wick to $1800. Explanation is on the chart. And the way BTC is looking right now, I hope we can even make it to the rejection point!”
Although this may be a controversial view, one thing that is clear is that the crypto markets are quickly reaching a point that will give traders and investors alike greater insight into just how long this persisting bear market will last.