Bitcoin has once again found itself within a prolonged consolidation phase as it trades sideways around its near-term support level at $8,500, which has continued to hold strong and has supported BTC’s price in the time since its latest downwards movement.
Analysts are now noting that they anticipate the cryptocurrency to face one more dip lower in the near-term before it begins its next uptrend, which could coincide closely with its fast approaching mining rewards halving.
Bitcoin Trades Sideways as Analysts Eye One More Dip
At the time of writing, Bitcoin is trading up marginally at its current price of $8,540, which marks its second day of trading sideways around this newly formed support level.
This latest downwards movement has proved that Bitcoin does currently have noteworthy support within the lower-$8,000 region, as it briefly dipped as low as $8,400 before finding enough buying pressure to propel its price back to its current levels.
This latest price action simple marks an extension of the slow grind downwards that Bitcoin has been facing in the time since it dropped from its 30-day highs of $10,600 that were set at the height of the cryptocurrency’s meteoric rally that first began when it touched $7,300.
Although there is support around BTC’s current price levels, analysts are closely watching for one more movement lower before it visits a region that has enough buying pressure to catalyze the next rally, which could exist within the $7,000 region.
Mayne, a popular crypto analyst on Twitter, spoke about this in a recent tweet, saying:
“$BTC: One more down move I reckon. Take out this current swing low, some more sideways, spring to fill that last of my bids then up. I’m building a swing long down here so my stop is wide and my position size is calculated accordingly. Play safe!”
This possibility also coincides well with the narrative that Bitcoin’s upcoming mining rewards halving will help spark a major bull trend.
MoonOverlord, another popular crypto analyst, spoke about this in a recent tweet while referencing a chart that shows the possibility that BTC will visit the lower boundary of a large flag it is currently trading within before eventually surging higher.
“Funny how it all lines up no? $BTC,” he concisely said.
The coming few weeks and months will provide significant insight into the veracity of this potential path forward.