Bulls Beware: Maximum Pain Scenario Could Push Bitcoin’s Price Lower in Coming Days
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The crypto markets have incurred overwhelmingly bullish price action over the past several weeks that appears to have confirmed many analyst’s belief that $3,200 truly is a long-term bottom for Bitcoin (BTC). The recent price action has drastically shifted overall market sentiment, and many investors are growing increasingly bullish with each new day.Despite this shift, one highly-respected analyst laid out what he believes is a realistic “maximum pain scenario” for Bitcoin, explaining that it may surge to above $6,000 before incurring significant selling pressure that pushes it lower.Bitcoin (BTC) Solidifies Position in $5,300 Range At the time of writing, Bitcoin is trading up less than 1% at its current price of $5,330, up from 24-hour lows of $5,260.After incurring some light selling pressure during this past Sunday, Bitcoin has been able to continue climbing higher and appears to have firmly solidified its position in the $5,300 region, just slightly below its historically established resistance level that is exists at $5,400.Over a one-week period, BTC is up significantly from its lows of $5,020, which were set last Monday. The cryptocurrency is currently trading just a hair below its seven-day highs of roughly $5,360, which were set earlier today.UB, a popular cryptocurrency analyst on Twitter, shared his thoughts on Bitcoin’s current price action, explaining that yesterday’s small dip could have been just what was needed to spark a small rally that would confirm his bullish sentiment.“$BTC – I wouldn’t be surprised if yesterday was “The Dip” before testing the local highs. I’d like to see a Daily Close above $5320 to further confirm my bullish argument. If I don’t see that in the next day or two, my bearish arguments will begin to hold more weight,” he explained in a recent tweet.$BTC – I wouldn't be surprised if Yesterday was "The Dip" before testing the local highs. I'd like to see a Daily Close above $5320 to further confirm my bullish argument.If I don't see that in the next day or two, my bearish arguments will begin to hold more weight.
#BTC pic.twitter.com/jEKuc1nZmB
— UB (@CryptoUB) April 22, 2019Will BTC Witness a “Maximum Pain Scenario?”Although Bitcoin may be on the edge of incurring some significantly bullish momentum, a move higher may be directly followed by a drop back into the lower $4,000 region.Alex Krüger, an economist who focuses primarily on cryptocurrencies, explained this possibility in a recent tweet, saying that he thinks another drop to $4,000 is the most realistic “maximum pain scenario” for the cryptocurrency.“Maximum pain scenario for $BTC: – shoot through to $6000 – rest right above $6000, luring longs in – dump back down to $4000s in 2 days – have everyone scream ‘this is The End’ – slowly move back up,” he explained.Maximum pain scenario for $BTC:– shoot through to $6000
– rest right above $6000, luring longs in
– dump back down to $4000s in 2 days
– have everyone scream "this is The End"
– slowly move back up
— Alex Krüger (@krugermacro) April 22, 2019Although BTC was just trading at $4,000 a few weeks ago, the question remains as to whether or not the recent price surge and continued upwards momentum will build enough support levels to keep the crypto above the $5,000 price level.Featured image from Shutterstock.

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