Bitcoin has been facing heightened volatility over the past week, briefly dropping to lows of $7,800 before incurring a massive influx of buying pressure that sent its price back into the mid-$8,000 region.
This volatility may not be over anytime soon, however, as analysts are now noting that BTC may soon drop to its range lows around $7,400 before finding enough buying pressure to flip the trend bullish and send it climbing higher.
Bitcoin Stabilizes in Mid-$8,000 After Testing $7,800
After testing $7,800 a couple of days ago, Bitcoin’s price has found stability within the mid-$8,000 region, and the cryptocurrency is currently trading up just under 2% at its current price of $8,390.
Over a one-week trading period, Bitcoin is currently sitting below its highs of $8,800 from last week, but is up from lows of just under $7,800, with these two levels potentially marking a short-term trading channel for the cryptocurrency.
It is also important to note that Bitcoin has found some resistance around $8,500, which likely means that this is the price that traders should watch in the short-term, as a decisive break above it could send BTC swiftly surging into the upper-$8,000 region.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she has set a near-term target at just below $8,700, which she believes will be closely proceeded by a swift drop lower.
“$BTC: Over the last week or so, it was a falling wedge that formed. Which we broke out couple days ago. My first target from the last btc posts of 8360 was attained, I want to see target 2 of 8670 to be reached before a drop. Double top on 4hr RSI will bring drop quicker,” she noted.
Other analysts agree that BTC is likely to see a drop in the near-future, as Mayne – another popular analyst – explained in a recent tweet that he believes the crypto could sweep its range lows in a drop to $7,400 before the bear trend shifts and the crypto is able to begin an upwards ascent.
“$BTC: More levels here, some nice swing lows could be cleared with a sweep of $7400,” he said while pointing to the below chart.
The coming hours and days will likely prove to be quite illuminating for crypto traders and investors alike, as it appears to be highly probable that Bitcoin will extend its recent volatility significantly further in the near-term.