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The upwards momentum the crypto markets have incurred in recent times was put into jeopardy yesterday after Bitcoin failed to surge past $9,000 and found itself reeling back down to the lower-$8,000 region.
Despite this less-than-positive price action, one analyst is quick to note that while looking at BTC from a long term perspective, it is still abundantly clear that Bitcoin is in the early stages of the next noteworthy uptrend, which means that investors shouldn’t fret too much about choppy price action in the near-term.
Bitcoin Finds Support Around Low-$8,000 Region
At the time of writing, Bitcoin is trading down nearly 4% at its current price of $8,426 and is down significantly from its recent highs of over $9,000 that were set yesterday.
Although BTC’s bearish reaction to the $9,000 range does appear to spell trouble for the cryptocurrency, while zooming out on BTC’s chart, it is clear that it is still firmly in the bull’s control over a longer-time frame.
Despite this, if the crypto’s bulls want to maintain control of the cryptocurrency going forward, then it is important that they hold the price steady above roughly $8,100, as a dip below this price level could lead to significantly further losses.
Josh Rager, a popular cryptocurrency analyst on Twitter, discussed the importance of this aforementioned price level in a recent tweet, noting that a close below it “wouldn’t be good.”
“$BTC: Small range & no position currently, I like to make my way through different time frames to at look various support/resistance. If it breaks down and closes below $8193 especially $8114, wouldn’t be good. Above $8330 on LTF would push up for a retest of previous support,” he said.
https://twitter.com/Josh_Rager/status/1134424400391016451
BTC Still in a Firm Uptrend, Despite Recent Drop
Although it is easy to believe that the latest pullback could mark the end of the cryptocurrency’s massive upwards surge that has occurred in recent times, it is important to note that it is still in the very early stages of the next uptrend, which means that pullbacks are to be expected.
Josh Rager also discussed this in a recent tweet, explaining that he believes BTC is less than one fourth into its next uptrend, based on historical data.
“$BTC Bull Market Cycles: As you look at the historical cycles on the Bitcoin chart, you will notice that each bull market cycle exceeds the length of the previous uptrend. Don’t worry about pullbacks, Bitcoin is likely less than 1/4 into the current uptrend to the next peak high,” he bullishly explained while referencing the below chart.
https://twitter.com/Josh_Rager/status/1134458358814203904
Although many short-term traders and investors fear that BTC may see increased bearish pressure in the coming days and weeks, as long as it continues to trade above its key support levels, it is highly probable that further gains are imminent.
Featured image from Shutterstock.
