Bitcoin Fundamentally Bullish, But Near-Term Technical Forecast Could Be Gloomy
Bitcoin and the aggregated crypto markets have once again faced a bout of downwards pressure today that have led most cryptocurrencies to drop several percent, with BTC briefly falling below $11,000 before finding some buying pressure that allowed it to climb higher.
Now, analysts are noting that BTC is currently facing some levels of technical weakness, but its fundamentals have never been more bullish, which may ultimately translate into an extension of the positive price action it has incurred over the past few months.
Bitcoin Finds Buying Support in $10,000 Region
At the time of writing, Bitcoin is trading down approximately 6% at its current price of $11,320 but is up slightly from its daily lows of $10,900 that were set earlier today.
Bitcoin’s recent volatility first began earlier this week when BTC hit highs of $13,800, at which point the crypto was unable to find enough support to maintain its parabolic surge, which subsequently led it to fall to lows of $10,500.
In the time since, BTC has been oscillating between its recent lows and highs in the lower-$12,000 region, which has proven to be a level of relative resistance for the cryptocurrency.
This newly established trading range has held for the past few days, and unless buyers or sellers step up and begin forcing a large move in one direction or another, it is highly likely that this trading range will persist for the near-future.
DonAlt, a popular cryptocurrency analyst on Twitter, shared his thought on Bitcoin in a recent tweet, explaining that he believes it will ultimately drop towards his near-term target of roughly $9,400.
“$BTC update: Green level toast, good news for bears.We’re now chilling at the last swing low before a major breakdown. If that doesn’t hold we’ll most likely go straight to my target. I could see a tiny bounce from green into red but ultimately I expect my target to be hit,” he explained.
Despite Near-Term Weakness, BTC is Technically Strong
Although in the near-term it does seem as though BTC will soon face increased selling pressure that could send it reeling to below $10,000, while keeping in mind that macro uptrend and its increasingly bullish fundamentals, it does seem as though bulls have nothing to worry about.
Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, spoke about some of these bullish fundamental developments in a recent tweet, noting that they could ultimately help lead to positive price action.
“Fundamentally, many bullish catalysts still ahead: Fidelity, Bakkt, Ameritrade, Etrade. Bakkt would begin testing its futures Jul/22. Retail interest is steadily climbing, and so is institutional interest, which has been piqued due to $BTC’s performance and macro narratives,” he explained.
Although it remains somewhat unclear as to where Bitcoin is heading in the coming days and weeks, once the price begins catching up with the positive developments that have been occurring over the past year it is likely that long-term investors will be rewarded.