Bitcoinâ€™s wild 2020 rally may currently be over extended, suggesting that the crypto could soon see a notable retrace that leads BTC to erase some of the gains it has posted over the past couple of weeks.
Analysts believe that this next drop could send Bitcoin reeling back into the lower-$8,000 region before it finds any notable support.
Despite the short-term bearishness that BTC may soon see, it is important to note that a visit to the $8,000 region could be just what is needed to spark a significant upwards movement, with a visit to this level potentially allowing it to begin its final ascent to all-time highs.
Bitcoin Stabilizes Around $10,200 as Analysts Eye Short-Term Bearishness
At the time of writing, Bitcoin is trading down just under 2% at its current price of $10,200, which marks a notable decline from its 24-hour highs of $10,500 that were set at the peak of yesterdayâ€™s upwards grind.
This slight upwards momentum was closely followed by a firm rejection that led the crypto to drop all the way to $10,100, which is where it found some notable buying pressure that helped it climb back up to its current price levels.
In the near-term, analysts believe that a break below the support within the lower-$10,000 region is imminent, which could lead the crypto to drop into the $9,000 region in the coming several hours.
George, a popular cryptocurrency trader, spoke about this possibility, noting that he believes Bitcoinâ€™s downturn will accelerate once the crypto decisively breaks below $10,200.
â€śStill short. Once we break back inside [Monday] range, expect accelerated downside. Take out liquidity into 9500â€™s and Iâ€™d long heavily,â€ť he concisely stated.
BTCâ€™s Next Drop Could be Far Reaching, but a Movement to All-Time Highs is Still ImminentÂ
CryptoBirb, another well-respected cryptocurrency analyst and trader, explained that he believes that a break below $9,600 would confirm that a mid-term correction is imminent.
If this break occurs, the chart seen below suggests that BTC could plunge towards $8,200 before finding enough buying pressure to spark the next notable uptrend.
â€śAll in all not much time left till btc correction imo. If you get the chance to long 8250-8600. And donâ€™t buy there then sorry, but we would have to rally to ATH without you,â€ť he explained, maintaining a bullish long-term sentiment.
The coming few days should offer some insight into the cryptoâ€™s mid-term market structure, with its reaction to $9,600 in the near-term offering significant insight into where Bitcoin will go next.