Bitcoin price performance has been mixed over the past week, with both sides of the market chasm struggling to establish an advantage. In the recent battle between bulls and bears, major cryptocurrencies appear to be bowing to pressure from the latter group.
As this weekend approaches, Bitcoin prices have retreated from recent local highs of around $94,000 to levels below the psychological $90,000 level. This latest correction has raised questions among the crowd, with investors wondering if this is just a temporary hiccup or the end of the economic recovery.
Why $80,500 will be the next low for BTC
In a Dec. 5 post on social media platform On-chain experts revealed that losing the $89,800 level is a more relevant event in the recent price decline.
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In a previous post on X, Wesson assessed the likely trajectory if Bitcoin price loses the $89,800 level. Cryptocurrency experts have revealed that losing this price mark could lead to an accumulation pattern for the bulls or a redistribution phase for the bears.
The bulls' accumulation period initially coincides with a decline in price, but eventually leads to Bitcoin price returning to levels above the most recent local high. On the other hand, in the redistribution phase, bears could push the main cryptocurrency to around $70,000.
BTC price also failed to sustain key on-chain levels, raising the possibility of a broader price plateau, according to Alpharaktal's CEO. “Lateral action is the cause, and big pumps and dumps are just the result,” Wesson said in a previous X post.
Additionally, Wesson pointed out that the next level to watch is $86,500, and if it loses it, a new local low is very likely to form around $80,500. This local low could be the perfect place for investors to buy on the dip and enter the market.
Bitcoin price overview
As mentioned above, the past week has been one of highs and lows for this premium cryptocurrency, which plummeted to $84,600 on Monday, December 1st. After a volatile start to the month, Bitcoin prices made a strong recovery to around $94,000 by Thursday, December 4th.
As of this writing, the market leader is valued at approximately $89,415, reflecting a price decline of over 3% over the past 24 hours. According to data from CoinGecko, the price of Bitcoin has fallen by nearly 10% over the past year.
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Featured image from iStock, chart from TradingView
