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The Bitcoin price is dipping again. Analysts say that the current market structure of a large selling pressure mirrors early bull-market days right when BTC was at its height in 2017.
The crypto markets tanked again on December 9th, but most analysts agree that the price of Bitcoin (BTC) is destined to remain in a range between $40,000 – $55,000 until after Christmas has passed.
According to Ben Lilly, an independent market analyst, bulls aren’t biting as much at the moment, and bids under the underlying $50,000 support level don’t seem encouraging enough for them.
A recent tweet from the analyst read: “Low bid pressure, return to neutral funding. This is starting to feel reminiscent of the price action we saw earlier this year as price bled to sub $30k.”
Another input from Rekt Capital, an analyst and pseudonymous Twitter user, provides insight into what levels of support and resistance are currently relevant for Bitcoin’s price action.
“BTC is threatening to lose this red support but no confirmed breakdown. Below red is the orange area, a strong support which ended two -25% corrections in February and September. Generally red needs to hold to avoid a drop to orange. Still holding here until further notice,” remarked Rekt Capital in their tweet.
Michaël van de Poppe, a full-time trader for Cointelegraph also posted a chart outlining what he sees as ‘make or break’ support levels in low 40K territory.
Van de Poppe wrote, “Chop, chop, chop it is for Bitcoin. A crucial area to hold is that region we’ve touched already at $42K. The close was above $46K–47K and I’d prefer not to lose that at all.”
BTC traders and analysts have been closely watching the Bitcoin chart for signs of an upcoming breakout. One such sign is pennants, which have been followed by strong breakouts in the past before their reversal destination at targets along with a descending triangle consolidation pattern that often occurs after these breaks transpire.
Nobody said the crypto market was easy, says another analyst TechDev concluding their tweet.
Wrapping up the set of analysis from famed analysts, the crypto trader and pseudonymous Twitter user Nunya Bizniz recently posted a chart comparing the price action for BTC during 2017’s bull market cycle to its current state, hinting at a possible breakout approaching soon.
Nunya Bizniz wrote, “Price action at a prior ATH that has been most similar to now was in 2017. Maybe?”
With Bitcoin prices constantly in motion, it’s hard to say with certainty what will happen next. The few $100,000 predictions by the end of 2021 may fall short and not occur until sometime between 2022-2023 if they happen at all.
Cryptocurrencies have been on a tear, gaining more and more momentum over the past year. The cryptocurrency market cap is close to $3 trillion now with Bitcoin’s dominance at 40%.