- Cryptocurrency experts believe that Bitcoin may lose 35% of its value if it fails to overcome the critical resistance.
- At the time of writing, BTC/USD is range-bound with no clear direction in sight.
The first cryptocurrency has been trading in a tight range limited by $8,200 on the upside and $8,000 on the downside. These levels are important for the coin’s short-term movements; however, further price development from the current level will define the longer-term forecasts for BTC.
$5,000 is a possibility
According to cryptocurrency trader Peter Brandt, BTC/USD bumped into a strong resistance area created by the upper boundary of the downside channel. If it is not cleared, the price may lose about 35% of its value and retest the area of $5,000. The target area corresponds to the lower boundary of the channel.
This view is shared by Jacob Kenfield, the founder of Signal Profits. He also noted the importance of the current resistance area, which is reinforced by 61.8% Fibo retracement for the upside move from December 2018 low and July 2019 high. If the coin fails to move above the area of $8,200-$8,500, the downside trend will be resumed with an initial target of $5000-5500.
BTC/USD: technical picture
At the time of writing, BTC/USD is changing hands at $8,072, mostly unchanged on a day-to-day basis and down 1.3% since the beginning of the day. The intraday charts are neutral. which means that the market is directionless at this stage. The coin ha. gained over 13% since the beginning of the year.
A series of events, including the growing tensions between the US and Iran created a bullish environment for the coin; however, the bulls faced a brick wall on the approach to $8,500 and had to retreat for the time being. The overall forecast remains positive as long as the price stays above $8,000.
BTC/USD daily chart
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