There’s no denying that bears have been firmly in control of Bitcoin’s price action over the past few weeks, with BTC remaining caught within a firm downtrend since late-November when it was trading at roughly $9,000.
This bearish price action has ultimately led BTC to enter an incredibly tight trading range within the lower-$7,000 region, but analysts are now noting that the crypto may be poised for further upside in the near-term, as it may currently be trading within a buy zone.
Analyst: Bitcoin in Firm Buy Zone Despite Perceived Bearishness
At the time of writing, Bitcoin is trading up nominally at its current price of $7,150, which marks a slight climb from its daily lows of roughly $7,000 that were set yesterday when bears attempted to push the cryptocurrency below this key short-term support level.
Although buyers were able to defend this level, its failure to incur any major bounce from this region may point to an underlying weakness amongst the crypto’s bulls and could spell trouble for where it heads next.
TraderSZ – a popular cryptocurrency analyst on Twitter, explained in a recent tweet that today’s weekly close could offer significant insight into how the crypto will trend for the week ahead, with a close below $7,300 opening the gates for significantly further losses.
“If we get bearish weekly close ideally below 7300, expecting a big downside expansion next week towards 6k. Invalidation on move above 7350,” he explained.
If we get bearish weekly close ideally below 7300, expecting a big downside expansion next week towards 6k. Invalidation on move above 7350. #btc
— TraderSZ (@trader1sz) December 15, 2019
Unless bulls do step up and push BTC above $7,350, it is likely that the crypto will see further short-term downside in the coming few days.
In spite of this, Bitcoin may still be positioned for significantly further gains, as one analyst is noting that it is currently trading within a buy zone.
Dave The Wave, a popular cryptocurrency analyst on Twitter, mused the possibility that Bitcoin is currently trading within a “buy zone channel,” pointing to the possibility that it will soon see a bullish trend reversal.
“In the buy zone, in the channel, in the heart of the diamond… who’s buying?” He said while pointing to the charts seen below.
In the buy zone, in the channel, in the heart of the diamond… who's buying?🙂 pic.twitter.com/Pt3OmVtw17
— dave the wave🌊 (@davthewave) December 15, 2019
Today’s upcoming weekly close will likely shine a light on whether or not the buy zone channel referenced by Dave The Wave holds clout, or if bears will continue to remain firmly in control of the cryptocurrency’s price action for the coming weeks and months.