Bitcoin has been in a firm uptrend over the past several days, which has allowed it to put a significant amount of distance between its current price and its recent lows of $6,800 that were set this past week.
It is imperative to note that the crypto’s rally appears to have stalled around its current price levels, leading some analysts to predict a near-term movement back down to $7,000. Other analysts, however, remain resolved that BTC will hit $8,000 before this retrace occurs.
Bitcoin’s Rally May Be Close to Being Over, So What Comes Next?
At the time of writing, Bitcoin is trading up just under 2% at its current price of $7,510, which marks a massive climb from its recent lows of $6,800 that were set during the crypto’s recent dip below $7,000.
BTC appears to have established a large trading range over the past several days and weeks, with range lows existing at roughly $6,400, and range highs at $7,800.
This range has been narrowing over the past couple of weeks, and it does appear that BTC is currently trading at the top of a new range between $6,800 and $7,500 that has been established over the past week.
Although Bitcoin has been able to post a decisive climb above these lows, the crypto’s recent rally has shown some signs of slowing as it pushes up against what appears to be a growing resistance level.
UB, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes that another pullback towards the low-$7,000 region is still in the cards, which may spell serious trouble for where it trends in the near-term.
“I don’t believe a pullback to $7150 – $7,080 is out of the question. A strong reaction there may change my ‘short significant bounces’ mentality. A large majority of significant bounces from lows have fully retraced a few days (or hours) later, will this time be different?” He noted.
I don't believe a pullback to $7150 – $7,080 is out of the question.
A strong reaction there may change my "short significant bounces" mentality.
A large majority of significant bounces from lows have fully retraced a few days (or hours) later, will this time be different?
— UB (@CryptoUB) January 5, 2020
Other analysts tend to agree that there may be further losses in store for the crypto in the near-term, but MoonOverlord, another popular crypto analyst, explained that he believes BTC could tap $8,000 before it incurs a downturn that sends it reeling lower.
“Rally already looks overextended just on this small pump but do you know what we say to the god of mean reversion? Not today,” he said while pointing to the chart seen below.
Rally already looks overextended just on this small pump but do you know what we say to the god of mean reversion?
Not today.$BTC pic.twitter.com/80PNnJ9Qyr
— BIG DOG (@MoonOverlord) January 5, 2020
How Bitcoin reacts to the immense selling pressure that exists between its current price levels and $8,000 will be telling for whether or not it is ready to begin another bout of upwards momentum, or if it will remain range bound.