Over the past few weeks, Bitcoin has been caught in an incredibly close trade order of $ 3,900 to $ 4,000, with strong resistance existing at the latter price point. Earlier today, BTC experienced increased volatility levels, but has since stabilized back to the lower $ 3,900 region.
An analyst now points out that Bitcoin's current price action looks strikingly like what was seen in early November just before the BTC's price downfall, which sent it from over $ 6,000 to nearly $ 3,000.
Bitcoin Experience Weak Volatility Levels Before Stabilization Over $ 3,900
Bitcoin is currently trading marginally at its current price level of $ 3,930 and rising from its daily decline of just under $ 3,900. Earlier today, BTC experienced some weak levels of volatility after it quickly climbed to nearly $ 4,000 before it was quickly rejected and dropped below $ 3,900. It has since stabilized back to its current price levels.
Recently, analysts have pointed out that the latest price campaign of the crypto competition is almost identical to that seen in early November 201
Moon Overlord, a popular cryptocurrency analyst, has recently pointed this out and briefly explains that the current price action of the crypt is "much like [to] before falling from 6k." [Over19659002] – Moon Overlord (@MoonOverlord) March 14, 2019
Moon Overlord further claimed his postulation that the crypt is in a very uniform way to how it was during November last year highlighting the similarities in the two diagrams.
– Moon Overlord (@MoonOverlord) March 14, 2019
Provided it replicates Its previous price action and a further fall in prices are inevitable, and the BTC is likely to face increased sales pressure in the near future.
Increasingly Bearish BTC Analysts
Other prominent analysts have recently claimed bearish views on Bitcoin, with support for Moon Overlord's theory that Bitcoin can currently cope with a large decline similar to seen late -2018.
Jani Ziedins from CrackedMarket blog shared his thoughts on Bitcoin while talking to MarketWatch and pointed to the strong $ 4,000 resistance as a possible reason why the crypto curve may soon see further losses.
"Bitcoin still does a lot of nothing, as it seems to be stuck under $ 4k resistance. Unlike the broad market, a trade that refuses to recover will gradually decrease," he explained.
Furthermore, Ziedins claimed that a negative heading for the crypto industry or Bitcoin in particular could be all that is required to lower its price.
"Buyers are not interested in pushing BTC any higher and that means that everything we do is waiting here until the next negative headline comes together and knocks us lower. What seems low is to give any indication that it will continue lower. "
Assuming that Bitcoin currently mimics its November 2018 pricing campaign, it is inevitable that the crypto curve will soon see a sudden influx of massive sales pressure – but until that happens, the theory is nothing more than an opportunity for traders to be aware of.
Highlighted Shutterstock image.