Bitcoin has been unable to maintain above its previous support level around $3,600 and is now nearing the bottom of its recently established range between $3,550 and $4,200. Bitcoin’s price drop has led the general crypto markets to plunge, with many altcoins trading down 6% or more.
One analyst now believes that the crypto markets will range for the coming days or weeks, with significant buying pressure existing around $3,000.
Bitcoin Likely to Range Before Dropping Further
At the time of writing, Bitcoin is trading down 2.5% at its current price of $3,570, down from its daily highs of nearly $3,700.
DonAlt, a popular cryptocurrency analyst on Twitter, recently said that Bitcoin needs to finish the weekend above $3,700 in order to see price gains throughout this coming week, which now appears to be highly unlikely, meaning that a drop into the low-$3,000 region could be imminent.
“If we do retest 3700 on the weekend and don’t manage to close above there I’m expecting ~3350. I’ll most likely close my hedge short there. This is the reason why you shouldn’t trust mismatched patterns,” he explained.
This bearish sentiment is echoed by Josh Rager, another popular cryptocurrency analyst on Twitter, who recently said that he expects the cryptocurrency to trade sideways for a while before drifting towards $3,000, where significant buying pressure exists.
“As the volume continues to slowly descend Bitcoin could see more sideways ranging… This could last for days or weeks until a decrease in buyers, currently holding up the market, at these levels… Nice support below $3,000 with lots of buyers waiting there,” Rager noted.
Although it is looking increasingly likely that Bitcoin will drift lower, it may find some support around $3,550, which Mati Greenspan, the senior market analyst at eToro, has previously said is the bottom of Bitcoin’s current trading range.
“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200,” he explained in a recent market update.
Altcoins Plunge Amidst Crypto Market Downturn
The recent market downturn, which began last week when Bitcoin failed to stabilize above $4,000, has led many altcoins to drop significantly.
At the time of writing, Ethereum is trading down nearly 7% at its current price of $118, down from its weekly highs of $160.
Bitcoin Cash has also dropped today and is currently trading down 7% at $125.3. Bitcoin Cash is down from its seven-day highs of $165.
XRP is one of today’s best performing major altcoins, as it is trading down 3% at its current price of $0.32.