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Bitcoin (BTC) Stuck Around 4,000, But Analysts Expect a Drop as Upwards Momentum Fizzles

The crypto markets are experiencing a relatively quiet Friday as Bitcoin continues to trade sideways in a tight trading range between $4,000 and $4,100. This stability should not fool traders, however, as analysts expect BTC to drop in the near future as its upwards momentum begins to fade.

If Bitcoin is unable to garner more buying pressure as the markets head into the weekend, it is likely that Bitcoin will drop back into the upper-$3,000 region.

Bitcoin (BTC) Stuck Below $3,900 

At the time of writing, Bitcoin is trading up less than 1% at its current price of $4,040. Throughout this week, BTC has firmly established $4,100 as a level of resistance, as it has unsuccessfully attempted on multiple occasions to break above this price level.

Importantly, however, Bitcoin has established $4,000 as a level of support, as it has bounced after touching this price. Despite this, the true test of Bitcoin’s current strength remains in its ability to advance above $4,200, which was established as a key resistance level last month.

Although the lack of upwards momentum does seem negative, Luke Martin, a popular cryptocurrency analyst on Twitter, recently noted that he is only bearish on BTC in the short-term if the crypto begins tepidly moving towards stronger resistance levels above $4,100.

“If $BTC starts getting higher timeframe 4hr/1D closes below 3930, THEN I’ll consider being bearish short term. Unless you are a short term day trader flipping your outlook between 4400 and 2k after a red 30 minute candle isn’t too helpful,” he noted.

Historically, the crypto markets have been more prone to making large price swings during weekend trading sessions, which means that traders may gain more insight into where BTC is heading next over the next couple of days.

Analyst: Bitcoin Likely to Drop Back into Upper-$3,000 Region in Near-Future

Because Bitcoin is not expressing any signs of significant technical strength at the moment, unless it is able to make a large upwards push in the near future, it may soon drop back into the upper-$3,900 region.

The Cryptomist, a popular cryptocurrency trader on Twitter, spoke about this possibility in a recent tweet, setting a target for BTC at $3,900.

“$BTC Mentioned couple days ago we will see movement for yesterday price action. We dropped and bounced of candle support as RSI support failed. We have 2-3 days to break this 4010 region resistance before we break this candle support and test target #1 at 3900 range,” she explained.

If the crypto does drop back below $4,000, this level will likely be further solidified as a strong psychological level of resistance, which may prove to be increasingly difficult to break above.

Traders and analysts alike will be closely watching to see how the markets respond to their current price levels during the weekend.

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Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in?

Bitcoin’s price action over the past year and a half has been quite the rollercoaster, with many investors incurring nearly instant wealth in late-2017, followed by tremendous losses for those who continued to hold their Bitcoin or other crypto investments.

Despite this, those who held and are still holding are doing so either because of a fundamental belief in the technology, or at the very least a belief that the markets will eventually surge back to, or above, their previously established all-time-highs.

That being said, recent comments from a prominent analyst about the potential Bitcoin’s price has to surge significantly higher will certainly be reassuring for embattled crypto investors who have been discouraged by the recent market conditions.

Bitcoin (BTC) Drops to $4,000 as Support Level is at Risk of Being Broken

At the time of writing, Bitcoin is trading down over 1% at its current price of $4,015, just a hair above its recently established support level at $4,000.

Yesterday, Josh Rager, a popular cryptocurrency trader on Twitter, explained that the lack of buying pressure above $4,000 is likely to lead BTC’s price to $3,500, which may be reached soon if the crypto’s bulls are unable to keep Bitcoin’s price above $4,000.

“$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained.

Naeem Aslam, the chief markets analyst at Think Markets U.K., recently spoke about the importance of the $4,000 level, noting that it will set the trend for which direction the markets head next.

“Questions are being asked constantly when it comes to Bitcoin’s battle with the $4000 mark. The result of this battle sets the tone for a bullish or bearish trend,” he explained, further noting that this price level has become a “matter of death or life for crypto traders.”

Could Bitcoin Surge to $400,000 Next?

Although Bitcoin’s instability around its current price levels does seem to be significant in the short term, in the long term it may be very insignificant, as Aslam believes that BTC could eventually surge as high as $400k.

“I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise. This is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run,” he bullishly explained.

Keeping that in mind, for traders who are waiting to buy the bottom, the risk / reward ratio simply doesn’t make sense.

Ryan Selkis, a popular figure within the crypto industry, spoke about the absurdity of trying to purchase a bottom when there is such a massive potential upside for BTC in a recent tweet.

“I’d be extremely surprised if the bottom wasn’t in for this $BTC bear market. If you’ve been on the sidelines, what are you waiting for if not now? If you’re a long-term bull, the 5 year EV is 25-50x, and you’re going to wait to time an entry that’s 20% more attractive?” He noted.

As the market’s price action continues to unfold, traders and investors should keep in mind the massive potential Bitcoin and the entire markets have to surge significantly higher in the next few years.

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As Bitcoin (BTC) Nears Historic Bounce Levels, Could the Crypto Winter Be Coming to an End?

Bitcoin has now firmly established its position in the low-$4,000 region, which was previously a strong resistance level for the crypto. Although this current stability is certainly positive for investors, BTC has, on multiple occasions, spiraled downwards after long bouts of involatile trading.

One analyst is now pointing out that Bitcoin is approaching a historic bounce level, which could mean further gains in the near-future are imminent.

Bitcoin (BTC) Trades Sideways Above $4,000

At the time of writing Bitcoin is trading up nominally at its current price of $4,070 and is up slightly from its daily lows of $4,030. Ever since BTC pushed above $4,000 last Friday, the cryptocurrency’s upwards momentum has stalled, leading it to trade in an incredibly tight trading range around its current price levels.

In late-February, Bitcoin swiftly pushed up to $4,200 before incurring significant selling pressure that brought its price back down to $3,800, which validated $4,200 as a strong level of resistance.

Josh Rager, a popular cryptocurrency trader on Twitter, discussed the strength of the $4,200 resistance level in a recent tweet, explaining that he does not believe BTC will be able to break above it any time soon, which means to drop to $3,500 could be inevitable.

“$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained.

Bitcoin Hits a Historic Bounce Level, Could a Crypto Market Surge be Imminent?

Although Bitcoin may now be pressing up against strong resistance levels, its volume is also resting at a historic bounce level, which likely means that increased volatility is right around the corner.

Crypto Thies, a popular analyst on Twitter, discussed this, noting that he expects the crypto to continue upwards, as this bounce level is typically followed by a decent price swing. Despite this, he also notes that the one factor that is going against BTC’s bulls is the lack of any sell climax so far.

“$BTC Volume MA (on bottom) is at historic bounce levels on the 1W. Volatility incoming. Confident in continuation to upside, although positioned to be fine in event of price dump. Always prepare for best and worst case. 1 bear thought I have, is a lack of sell climax thus far,” he explained.

Assuming that Bitcoin is able to build a greater level of buying pressure at its current prices, than there is a high likelihood that a move upwards will occur in the near future.

As the crypto markets enter the weekend, it is likely that they will see increased levels of volatility that stems from the lower-than-average trading volume.

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Analyst: 4,000 is a Critical Level that Bitcoin Must Defend, Or Else Significant Losses Could be Imminent

Bitcoin (BTC) has now firmly planted itself in the low-$4,000 region and appears to be increasingly building relative levels of support at the ever-so-important psychological price of $4,000. Despite this, the cryptocurrency still faces resistance levels around $4,200, which may prove to be a difficult price level to break above.

Although $4,000 was only turned into a region of support recently, one prominent analyst is now claiming that this is a key level that BTC must hold above, as a drop below would open the gates to significantly further losses.

Bitcoin Gains Some Upwards Momentum After Trading Sideways Around $4,000

At the time of writing, Bitcoin is trading up just under 1% at its current price of $4,060. BTC has thus far been able to find some levels of stability at its current price, but earlier this month it experienced a sharp rise, followed by a plummet, that validated $4,200 as a strong level of resistance.

DonAlt, a popular cryptocurrency trader on Twitter, recent shared his thoughts on Bitcoin’s current price action, noting that he’s expecting a “big move” soon, with an upwards price target set at around $4,500, and a lower target set at $3,500.

“$BTC update: Watching paint dry is more exciting than watching this. I think we’ll be getting a pretty big move soon. If it’s to the upside I’d expect 4.5k~ If it’s to the downside I’d expect 3.5k~ I’d much rather short an up move or long a down move than trade here,” he explained.

DonAlt further explained in a separate tweet that he sees increased tests of both resistance and support levels as equating increased weakness of those levels, which may be the reason why BTC finally broke above $4,000 – as it was pushing up against this price level for several weeks – and may also mean that it is imperative that bulls do not let BTC sit at $4,000 for too long.

“Most people become more and more confident the more often support/resistance holds. For me it’s the opposite, more tests equal increasing weakness. Buyers/Sellers can only buy/sell so much until they run out,” he explained.

Analyst: $4,000 a “Life or Death” Price Point for Bitcoin

When considering DonAlt’s comment regarding the gradual weakening of both support and resistance levels, it becomes apparent that $4,000 will likely continue to be an important price for the cryptocurrency in the long-term.

Naeem Aslam, the chief markets analyst at Think Markets U.K. recently spoke to MarketWatch about the importance of this price level, notably calling $4,000 a “life or death” price region for crypto traders.

“Since Dec. 14, 2018, there have been several battles between bulls and bears at the price level of $4K. In each. bulls have lost the war because after the first attack at the $4K level the bears have been able to gain enough strength to push the price back below this critical mark,” he said.

Traders and analysts alike will gain greater insight into how Bitcoin responds to being above this price level as the week continues to drag on.

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Analyst: A Break Above 4,300 Could Create Ugly Situation for Bitcoin (BTC) Short Sellers

After breaking above the ever-so-important $4,000 level, Bitcoin has been able to maintain above this price, but BTC has not been able to garner any significant buying pressure that allows it to climb higher, which could spell trouble for the cryptocurrency.

One analyst is now importantly noting that Bitcoin’s bears are ardently stopping the bulls from pushing BTC any higher, but also explained that a break above $4,300 would create an ugly situation for them, as it would open the gates for further gains.

Bitcoin (BTC) Stuck Just Slightly Above $4,000 

At the time of writing, Bitcoin is trading down nominally at its current price of $4,030, where it has been trading at for the past couple of days.

Although traders and analysts alike have long hypothesized that a break above $4,000 – which was formerly an incredibly strong level of resistance – would lead the crypto to surge higher. Despite this, increased selling pressure has led it to remain stagnant just a hair above $4,000, which has not yet been validated as a fresh support level.

While speaking to MarketWatch, Alex Kuptsikevich, a financial analyst at FxPro, echoed a rumor that has been drifting throughout the crypto community regarding BTC’s current price action looking eerily similar to that which occurred in November just prior to its crash from $6,000 to $3,000.

“The current absence of a dynamic is a bit scary, as it resembles the October decline, which ended in an impressive selloff,” he explained, further adding that the $3,900 to $4,000 range has become an inflection point for BTC.

If the postulation regarding Bitcoin’s current price action mimicking that of last November’s is accurate, than a significant drop could be in store.

Analyst: BTC Must Break Above $4,300 in Order for Further Gains to be Plausible  

Although Bitcoin is presently stuck at its current price levels, if bulls are able to garner a significant amount of buying pressure that pushes the crypto to above $4,300, it may be able to surge significantly higher and recover much of its recent losses.

Flood, a popular cryptocurrency analyst on Twitter, recently expressed this sentiment in a recent tweet, claiming that it is going to “get ugly” for short sellers if Bitcoin pushes past $4,300.

“Someone very clearly defending shorts in this range. Going to get ugly for them if 4300 breaks,” he explained in a recent tweet.

It is important for traders to note that earlier this month Bitcoin surged to highs of $4,200 before spiraling back down to roughly $3,700, which validated the former price level as a strong area of resistance. Without a significant influx of buying pressure, it is highly unlikely that BTC will be able to climb past the $4,200-$4,300 region in the near future.

As the week drags on, traders and analysts alike will gain greater insight into the direction Bitcoin is heading as its reactions to key price levels becomes more apparent.

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