Bitcoin price has been declining heavily recently, after briefly approaching the $10,000 level. Earlier today, it was trading below the $6,800 level.
At press time, the price has recovered and BTC is trading in the $7.200 area.
‘Bullish divergence on multiple frames’
A crypto analyst @IamCryptoWolf reckons that Bitcoin is currently bouncing due to the bullish divergence on oversold conditions.
He points out that the $7,490 level of resistance is the next aim for the bulls to reach.
We're bouncing because of the bullish div on multiple time frames on oversold conditions. 7490 is the resistance to break through for bulls. pic.twitter.com/GGev4Bw4Ff— CryptoWolf (@IamCryptoWolf) November 25, 2019
The Bitcoin price is quickly approaching the level mentioned in the tweet.
‘Bears are pushing BTC price to $5,500’
In his earlier tweet, the analyst mentioned that the bears obviously wish the bulls to move out of the way and are pushing the Bitcoin price down to the $5,500 support.
Btc is at monthly support. Bulls want a monthly candle close above the 21EMA. Bears want Bulls to capitulate pushing price to the next support at 5500s. pic.twitter.com/uYJWs20JVB— CryptoWolf (@IamCryptoWolf) November 25, 2019
‘Bitcoin liquidity evaporating fast’
Meanwhile, the director of digital assets at VanEck, Gabor Gurbacs, is warning the community that Bitcoin liquidity is going away fast since bid-offer spreads are widening on a tremendous scale.
The market can make a U-turn in either direction, he warns.
Bitcoin liquidity evaporating fast as indicated by the sharp widening of bid-offer spreads on a sample $10million trade. Bid-offer spreads widest in the past 3 months. Be careful out there. Market can snap fast any direction. Ease into positions. Avoid large/any market orders. https://t.co/44BEoqMA67— Gabor Gurbacs (@gaborgurbacs) November 25, 2019