Bitcoin: After Failing to Break Above $8k, Analysts Believe BTC's Price May Stagnate
Bitcoin has once again failed to break back into the $8,000 region, signaling that this price level will remain a level of resistance for the foreseeable future. Importantly, BTC has still been able to hold above $7,600, which appears to have become a strong level of support for the cryptocurrency.
Now, analysts believe that Bitcoin may be finding itself in a relatively tight trading range that may continue to persist for the time being, which may signal that the volatility that the markets have been experiencing as of late is coming to an end for the time being.
Bitcoin Continues Finding Support Around $7,600 Despite Increasing Selling Pressure
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $7,800, down slightly from 24-hour highs of just over $8,000.
While looking at BTC’s price action over the past week, it is clear that the cryptocurrency is currently in between two firmly established levels of support and resistance, as it has been oscillating between $7,600 and $8,000, which may turn into a long-term trading range that persists for the near future.
The Wolf of All Streets, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin may find itself caught between the aforementioned trading range for the foreseeable future as it enters “full sideways mode.”
“$BTC Go outside, enjoy your day. Set alarms for the top and bottom of this range. We are in full sideways mode, as price just bounced right off of the EQ of this range,” he explained.
Analyst: BTC Faces Multiple Levels of Strong Resistance Above $8,000
Although $8,000 is the key resistance level that analysts are closely watching for the time being, there are multiple other levels of resistance that exist just above this price that may require a significant influx of buying pressure to be broken above.
Josh Rager, another popular crypto analyst on Twitter, discussed these resistance levels in a recent tweet, explaining that the bullishness of a move above $8,000 may be tempered by resistance around $8,200.
“$BTC Update: The new resistance to look at is $8017 for Bitcoin. With a close above here, it has a chance to then push and close above $8200 which would be bullish to move to $8550’s. Mid-channel is currently holding as support. Close below $7600 is bearish (4 hr chart),” Rager explained.
As the week drags on and Bitcoin continues to bounce between the aforementioned levels of support and resistance, it is likely that traders will begin gaining better insight into whether or not the markets will be able to further extend their upwards momentum throughout the Summer months.
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