Bitcoin is on track to post gains for the fourth consecutive day following a recent bout of volatility from last weekend. Importantly, the crypto is currently caught in a trading between approximately $3,700 and $4,200, which BTC may be stuck between for an extended period of time.
Now, one popular figure within the cryptocurrency industry is claiming that the market sentiment is beginning to shift as fund managers begin to believe that the low-$3,000 region is a long-term bottom for the cryptocurrency.
Bitcoin (BTC) Caught in Fresh Trading Range, Likely Faces Strong Resistance at $4,700
At the time of writing Bitcoin is trading up marginally at its current price of $3,940. Over the past several days, BTC has been able to climb slightly after facing increased volatility over this past weekend.
Over the past month or so, Bitcoin and the entire crypto markets have generally incurred volatility over the weekends, which may stem from lower-than-average trading volume.
Josh Rager, a popular cryptocurrency trader on Twitter, recently shared his thoughts on Bitcoin’s current price action, noting that it is currently caught in a trading range between $3,700 and $4,200, and further adding that BTC faces incredibly strong resistance at $4,700.
“$BTC Weekly Chart… Zoom out, currently ranging between $3,600 to $4,200. If Bitcoin pushes up, I don’t see it closing above the weekly resistance near $4,700 and that’s my short position. A drop would retest Weekly MA which has held $BTC price (break below weekly MA is bearish)” he explained.
$BTC Weekly Chart
Zoom out, currently ranging between $3,600 to $4,200
If Bitcoin pushes up, I don't see it closing above the weekly resistance near $4,700 and that's my short position
— Josh Rager (@Josh_Rager) March 7, 2019
Currently, Bitcoin’s weekly MA is set at approximately $3,550 according to the chart that Rager referenced.
Crypto Market Sentiment May be Shifting as $3,000 Holds as Strong Level of Support
Although Bitcoin has experienced some volatility recently, the sentiment regarding BTC and the overall crypto markets may be starting to shift as the cryptocurrency continues to respect the low-$3,000 region as a strong level of support.
Anthony Pompliano – founder and partner at Morgan Creek Digital – recently explained that the drop to $3,000 significantly impacted the overall crypto market sentiment, but further added that BTC’s ability to hold steady above $3,000 may signal that this price is a long-term bottom, which is leading many fund managers to have a more optimistic outlook on the markets.
“In Q3/Q4 last year, bitcoin’s price had halted its free fall and consolidated around $6,500… Unfortunately, this was not the bottom and we abruptly saw another 50%+ decrease in price… Thankfully, sentiment appears to be shifting now. Many fund managers are describing expectations for bitcoin to continue choppy price action in a sideways trend through most of 2019, but they are cautiously becoming more optimistic that the bottom of the bear market is around $3,000,” he explained.
As the crypto markets head into the weekend, it is a strong possibility that they will see increased volatility, and traders should closely watch how BTC responds to the upper and lower limits of its recently established trading range for insight into where the crypto is heading next.
Featured image from Shutterstock.
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