Analyst: Despite Today’s Drop, Bitcoin (BTC) Not Likely to Retrace To 4,000

Following Bitcoin’s overwhelmingly positive price action over the past couple of weeks, the cryptocurrency has finally hit a strong level of resistance that sent it spiraling downwards. Now, BTC is beginning to establish fresh levels of support and resistance, which may lead to the formation of a fresh trading range.
Although today’s drop has allowed Bitcoin’s bears to take control of the cryptocurrency, analysts are now explaining that BTC does have multiple levels of strong support formed throughout the $4,000 region, which means that a drop back to the lower-$4,000 level is highly unlikely.
Bitcoin (BTC) Fails to Break Above $5,350 
At the time of writing, Bitcoin is trading down over 4% at its current price of $5,060 and is currently trading near its daily lows.
Today’s drop was brought about yesterday after Bitcoin swiftly surged from roughly $5,300 to $5,350, where it faced significant levels of selling pressure that sparked the sell-off that sent the cryptocurrency down to its current price levels.
Importantly, BTC’s downwards descent was halted when it reached the $5,000 region, signaling that a significant amount of support exists at this price level.
Mati Greenspan, the senior market analyst at eToro, spoke about the market drop in a recent email, designating yesterday’s upwards surge as a “fake breakout” that sparked today’s drop.
“We’ve been tracking a new resistance level on Bitcoin at $5,350 (dotted white line). Last night, it managed to break this level, but not in a good way. As you can see, the move higher was quickly followed by a move lower, making this a false breakout,” he explained.
Analyst: BTC Has Significant Support Throughout $4,000 Region
Although many traders and investors were quick to shift their bias back to being bearish after today’s drop, one prominent cryptocurrency analyst recently explained that Bitcoin has multiple levels of support that exist throughout the $4,000 region.
Alex Krüger, an economist who primarily focuses his attention on cryptocurrencies, discussed where BTC’s next levels of support exist in a recent tweet, noting that a drop below $5,000 will likely lead the crypto down towards $4,780.
“Coinbase high was $5489. Don’t expect a pullback to $4000. Too deep. Support: 5000, 4780-4680, 4550 (200DMA), 4400, 4200. Resistance: 5350, 5500, 5750 (weak), 6000, 6400,” he explained.

Litecoin Founder Slams Ethereum’s Fastest Growing Use Case in DeFi Hack’s Wake
Monday February 17, 2020

Following a recent DeFi smart contract compromise, Charlie Lee has attacked the sector for being centralised. The Litecoin founder called the decentralised finance industry, growing fastest on Ethereum, “decentralization theatre”. The most recent application...

The post Litecoin Founder Slams Ethereum’s Fastest Growing Use Case in DeFi Hack’s Wake appeared first on 12bitplay - Bitcoin Play.

Coinbase high was $5489. Don't expect a pullback to $4000. Too deep.
– Support: 5000, 4780-4680, 4550 (200DMA), 4400, 4200– Resistance: 5350, 5500, 5750 (weak), 6000, 6400 https://t.co/IbAe07wTEZ
— Alex Krüger (@krugermacro) April 11, 2019

XRP Poised for a Massive 100% Rally as Technical Strength Grows
Sunday February 16, 2020

XRP’s massive rally seen earlier this week appears to have simply been a flash in the pan, as the crypto has now retraced back below its key psychological resistance at $0.30, opening the gates...

The post XRP Poised for a Massive 100% Rally as Technical Strength Grows appeared first on 12bitplay - Bitcoin Play.

Moreover, Krüger also explained that his ideal target exists at the $4,750 area, and that he does not see Bitcoin making a move below $4,400.
“This is a pullback. Setup is complete. I’m looking for 4750 area, that’d be ideal. Surprised to see price move beyond 4400. Though I rather trade price action and blood than levels,” he said while responding to a tweet asking about how deep the pullback will likely be.

Trader Who Nailed Bitcoin’s $3,000 Bottom Fears More Downside is Near
Thursday February 20, 2020

Bitcoin did not fare well in 2018. Over the course of that year, the cryptocurrency plunged by dozens of percent from prices well above $10,000 to as low as $3,150 by December, falling as...

The post Trader Who Nailed Bitcoin’s $3,000 Bottom Fears More Downside is Near appeared first on 12bitplay - Bitcoin Play.

This is a pullback. Setup is complete. I'm looking for 4750 area, that'd be ideal. Surprised to see price move beyond 4400. Though I rather trade price action and blood than levels.
— Alex Krüger (@krugermacro) April 11, 2019

As the crypto markets near the upcoming weekend trading session, crypto traders and analysts alike will likely gain a greater understanding of were BTC’s strongest levels of support exist.
Featured image from Shutterstock.
The post Analyst: Despite Today’s Drop, Bitcoin (BTC) Not Likely to Retrace To 4,000 appeared first on NewsBTC.

You may also like...