Bitcoin price has had a mixed performance over the past week, with both sides of the market divide struggling to gain dominance. In the latest battle between the bulls and the bears, the major cryptocurrency appears to be succumbing to the pressure of the latter group.
As this weekend approached, Bitcoin price retreated from the last local high of around $94,000 to below the psychological level of $90,000. This latest correction has raised questions among the crowd, with investors wondering if this is just a short-lived hurdle or the end of the recovery.
Why $80,500 Could Be the Next Local Low for BTC
In a December 5 post on the social media platform X, CEO and founder of Alpharactal shared insight into the latest Bitcoin price drop below $90,000. The on-chain expert revealed that losing the $89,800 level is the most relevant event in the latest price drop.
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In an earlier post on The crypto expert revealed that losing this price level could lead to an accumulation pattern for the bulls or a redistribution phase for the bears.
While the accumulation period for the bulls would initially coincide with lower prices, this eventually leads to a Bitcoin price return above the last local high. Meanwhile, a rebalancing phase could allow the bears to push the flagship cryptocurrency to around $70,000.
According to Alphractal’s CEO, BTC’s price also failed to hold key levels along the chain, reinforcing the likelihood of a broader sideways price phase. “Lateral action is the cause – the big pumps or dumps are just the effect,” Wedson had previously stated in his previous X post.
Additionally, Wedson noted that the next level to watch is $86,500, which if lost opens up the very high possibility of a new local low around $80,500 forming. This local low could be a perfect place for investors to buy the dip and enter the market.
Bitcoin price overview
As previously mentioned, the past week has been one of highs and lows for the major cryptocurrency, dropping to a low of $84,600 on Monday, December 1. After a shaky start to the month, Bitcoin prices rebounded strongly to around $94,000 on Thursday, December 4.
At the time of writing, the market leader is valued at around $89,415, reflecting a price drop of more than 3% in the last 24 hours. According to data from CoinGecko, the price of Bitcoin has fallen by almost 10% in the past year.
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Featured image from iStock, chart from TradingView