After briefly incurring a significant influx of buying pressure, Bitcoin (BTC) has once again lost its momentum and is now nearing its key psychological support level at $10,000, which has proven to be a strong support level for the cryptocurrency in recent times.
In spite of this currently bearish price action, one analyst is noting that history suggests that Bitcoin may currently be in the early stages of the next massive bull run, which may mean that its current bearishness will ultimately prove to be fleeting.
Bitcoin Drops to $10,000
At the time of writing, Bitcoin is trading down just over 1.5% at its current price of $10,020, which marks a slight retrace from its 24-hour highs of over $10,200.
Bitcoin’s inability to gain any momentum as it trades sideways within the lower-$10,000 region appears to be spelling trouble for the cryptocurrency’s bulls, as it is beginning to look increasingly likely that another drop into the four-figure price region is imminent.
Previously, BTC has found significant support within the lower-$9,000 region, and this is the price region that analysts will be closely watching in the near-term.
UB, a crypto analyst on Twitter, spoke about Bitcoin’s current price action in a recent tweet, explaining that he expects it to drop lower in the coming days after facing a rejection at $10,450.
“$BTC – Despite the strong Daily Candle, Bitcoin is still unable to close above Diagonal Resistance / $10,450. You can see many examples on the Hourly Chart when significant wicks lead to nothing. Typically, the wicks get “filled” and price continues in that direction,” he noted.
$BTC – Despite the strong Daily Candle, Bitcoin is still unable to close above Diagonal Resistance / $10,450.
You can see many examples on the Hourly Chart when significant wicks lead to nothing.
Typically the wicks get "filled" and price continues in that direction. #BTC pic.twitter.com/yAKKxHYZZp
— UB (@CryptoUB) September 21, 2019
Will BTC Soon Enter Next Parabolic Phase?
Willy Woo, another popular crypto analyst on Twitter, spoke about the possibility that BTC is currently in the early-stages of the next bull run in a recent tweet, pointing to a historical pattern that shows that BTC may soon see significantly further gains.
“Cheat sheet map of where we are in this bull market according to on-chain metrics. We’re closing up the opening act of the bull market and awaiting the middle bull market to commence,” Woo said while pointing to the below chart.
Cheat sheet map of where we are in this bull market according to on-chain metrics. We're closing up the opening act of the bull market, and awaiting the middle bull market to commence. pic.twitter.com/xkmY5i605G
— Willy Woo (@woonomic) September 21, 2019
The coming days and weeks may prove to be somewhat bearish for Bitcoin, but its long-term price action may be bolstered by bullish fundamentals that are seen within the on-chain data-based chart that Woo references above.
Featured image from Shutterstock.
