Bitcoin and the entire crypto market appears to have entered another bout of sideways trading within the lower-$7,000 region, with bulls struggling to surmount the resistance that has been formed around $7,300.
The price action seen throughout the past couple of weeks, however, seems to suggest that this consolidation may be short-lived, as it is on the cusp of breaking above a critical trendline.
A clean break of this trendline could send BTC rocketing up towards its next key resistance level around $9,000, according to one prominent analyst.
Bitcoin Enters Consolidation Phase, But It Could Be Gearing Up for a Big Movement
Currently, Bitcoin is trading down just over 1% at its current price of $7,250, which is around the level at which it has been trading at throughout the past day.
This sideways trading comes shortly after the crypto posted multiple rejections at $7,500, with the selling pressure existing around this level proving to be insurmountable for bulls in the near-term.
Because consolidation below resistance is a historically bullish signs, this current price action may simply mark bulls attempting to drum up greater strength before making their next big push.
Galaxy, a prominent crypto analyst on Twitter, offered a highly bullish near-term possibility to his followers, explaining that the benchmark cryptocurrency is currently pushing up against a key descending resistance level.
He notes that a decisive break above this level will open the gates for a swift movement to $9,000.
“$6800 – $9000 is the dream trade I’m waiting for. There is also a slight chance we can break the green line today/tomorrow and just go for it. Either way, I’m patiently waiting to start riding the train to 9K,” he noted.
Multiple Technical Factors Support This Notion
Mac, another popular cryptocurrency analyst on Twitter, explained that multiple technical factors point to the possibility that Bitcoin will make a near-term movement towards $6,800 before rocketing up to its CME gap at roughly $8,600.
“BTC bullish scenario – Rejection here $7450-$7650 on weekly – Retrace to $6800-6650 – Fill up CME gap in few 4-8 weeks,” he noted.
Although it does appear to be a strong possibility that Bitcoin will make a short-term movement down towards $6,800, the support at this region could be enough to send the cryptocurrency skyrocketing higher in a move that erases virtually all of its recent losses.