Bitcoin (BTC) has once again been able to extend its winning streak and is now tepidly approaching its next resistance level of $4,100. This resistance level has proven to be quite strong over the past several weeks, and it will likely require a massive surge in buying pressure to propel the cryptocurrency above this level.
If Bitcoin is able to break above $4,100, its next level of resistance will lie at $4,200, which one analyst believes would mark the end of the bear market, assuming this price level is broken above.
Bitcoin (BTC) on a Slow Climb Towards $4,100
At the time of writing, Bitcoin is trading up nominally at its current price of $4,095, just a hair under its next resistance level of $4,100. Over the past month, BTC has failed on multiple occasions to break above this price level, and it is unclear if it currently has enough buying pressure backing it to break above this level today or during the coming weekend.
Although BTC’s current price action does look positive, analysts are quick to point out that the bears still have some ammunition to push the cryptocurrency back into the $3,000 region.
Josh Rager, a popular cryptocurrency analyst on Twitter, reaffirmed that he believes it is likely that BTC will drop back towards $3,500 before finding strong buying pressure.
“$BTC: Looking at the chart, a possible pattern scenario. While I don’t trade patterns, a drop down to support in the $3500 range would fit perfectly with the current bear pennant and would lead to a potential bounce. Whales know you see these patterns so stay on your toes,” he explained.
Looking at the chart, a possible pattern scenario
While I don’t trade patterns, a drop down to support in the $3500 range would fit perfectly with the current bear pennant and would lead to a potential bounce
Whales know you see these patterns 🐳 so stay on your toes 👣 pic.twitter.com/xf0LMf9P6X
— Josh Rager 📈 (@Josh_Rager) March 29, 2019
If Bitcoin does drop to $3,500, it will be woefully close to revisiting its 2018 lows that exist at approximately $3,200.
Analyst: Bear Market Could be Over if BTC Breaks Above $4,200
Although there are not a ton of reasons for crypto bulls to get too excited just yet, one analyst is pointing out that a break above $4,200 would technically mean that the persisting Bitcoin bear trend is over.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, spoke about this possibility in a recent tweet, explaining that the bear market has technically been over for a few months, but that the bear trend that is still persisting may soon be over.
“The crypto bear market has been over for three months now. $BTC breaking above 4200 will mark the end of the bear trend that started in January 2018. Going to miss this big fellow,” he explained.
The crypto bear market has been over for three months now. $BTC breaking above 4200 will mark the end of the bear trend that started in January 2018. Going to miss this big fellow. pic.twitter.com/nzsUhmDYXm
— Alex Krüger (@krugermacro) March 29, 2019
Bitcoin has historically experienced larger bouts of volatility during weekend trading sessions due to the lower-than-typical trading volume, which means that the current status of the bear trend may be discovered as soon as this weekend.
Featured image from Shutterstock.