The price of Bitcoin has been hovering around $19,400 for the past few days. While this is a positive sign, some analysts are still concerned that it could drop lower than $18k before recovering.
Bitcoin price started the day at $19,400, the same level as yesterday.
On Tuesday morning, bitcoin opened at $19,464 on Bitstamp and was trading at around $19,300 by noon. At press time it is hovering around $19,200 with a weekly high of $20K seen on Sunday.
The price has not changed significantly since Monday afternoon when it traded within a range between $18,500 and $20K. It is likely to remain in this area until there is a clear sign that capitulation may be coming or until we see an upward trend develop again for some reason (e.g., a futures market rally).
While it’s true that Bitcoin has not broken past $19,500, many have viewed this period of sideways trading as a bullish sign due to the narrowing ranges.
Bitcoin Looking To Stabilize
Accordingly, BTC/USD has not broken past $19,500 and is still trading within a range. Bitcoin price has not broken above that level yet and remains below it at this time of writing. This means there is a possibility for another significant move down in the near future if sellers continue to pressure prices lower or if buyers are unable to defend their current positions with enough conviction going forward.
Van de Poppe said Bitcoin could still drop to $5,000 before a sustained recovery. He noted that if the price dips below $4,000 again, it would likely result in more capitulation selling and could potentially “last for quite some time.”
Bitcoin managed to stay above $19k today, as traders speculate that a capitulation event may be imminent. The cryptocurrency has been trading in a range for the past week, struggling to break past $19k, while its market cap briefly passed $350 billion on Wednesday for the first time since February.
Bitcoin’s price has been stuck between roughly $18k and $20k since April 18th when it hit an all-time high of nearly $22k. The coin has fallen ~9% from that point but remains more than 50% higher than its December 2018 lows near $4200.