The price action seen throughout the past couple of weeks, however, seems to suggest that this consolidation may be short-lived, as it is on the cusp of breaking above a critical trendline.
A clean break of this trendline could send BTC rocketing up towards its next key resistance level around $9,000, according to one prominent analyst.
Bitcoin Enters Consolidation Phase, But It Could Be Gearing Up for a Big Movement
Currently, Bitcoin is trading down just over 1% at its current price of $7,250, which is around the level at which it has been trading at throughout the past day.
This sideways trading comes shortly after the crypto posted multiple rejections at $7,500, with the selling pressure existing around this level proving to be insurmountable for bulls in the near-term.
Because consolidation below resistance is a historically bullish signs, this current price action may simply mark bulls attempting to drum up greater strength before making their next big push.
Galaxy, a prominent crypto analyst on Twitter, offered a highly bullish near-term possibility to his followers, explaining that the benchmark cryptocurrency is currently pushing up against a key descending resistance level.
He notes that a decisive break above this level will open the gates for a swift movement to $9,000.
“$6800 – $9000 is the dream trade I’m waiting for. There is also a slight chance we can break the green line today/tomorrow and just go for it. Either way, I’m patiently waiting to start riding the train to 9K,” he noted.
$6800 – $9000 is the dream trade I’m waiting for.
There is also a slight chance we can break the green line today/tomorrow and just go for it.
Either way, I’m patiently waiting to start riding the train to 9K.$BTC pic.twitter.com/kxJ8LyRacL
— Galaxy (@galaxyBTC) April 8, 2020
Multiple Technical Factors Support This Notion
Mac, another popular cryptocurrency analyst on Twitter, explained that multiple technical factors point to the possibility that Bitcoin will make a near-term movement towards $6,800 before rocketing up to its CME gap at roughly $8,600.
“BTC bullish scenario – Rejection here $7450-$7650 on weekly – Retrace to $6800-6650 – Fill up CME gap in few 4-8 weeks,” he noted.
$BTC bullish scenario
– Rejection here $7450-$7650 on weekly
– Retrace to $6800-6650
– Fill up CME gap in few 4-8 weeks pic.twitter.com/0WpNFh6E5y
— Mac (@MacnBTC) April 8, 2020
Although it does appear to be a strong possibility that Bitcoin will make a short-term movement down towards $6,800, the support at this region could be enough to send the cryptocurrency skyrocketing higher in a move that erases virtually all of its recent losses.
Featured image from Shutterstock.