A Break Below $10,100 Means Bitcoin Bulls Are in ‘Big Trouble’ While Above $12k is ‘Hot Air Territory’
- An upside trap before downward continuation, expected target $9,700
- Large accumulation happening after big players took profit at 2019 high
- If Bitcoin breaks above $12,000, bulls will be back into the beast mode
- The upside is “considerably larger than the downside”
On August 16th, the Bitcoin price broke above $10,000 and since then has remained above this level.
Analysts and traders are still calling out for bears and expecting a drop soon.
TraderX0X0 says Bitcoin monthly is holding well but nothing is clear at the moment. While he is not looking for longs, possible shorts from a break or close below monthly.
Currently, BTC/USD is trading at $10,400 with 24-hours gains of 0.59%. But trading volume is back to falling at $634.5 million, as per Messari.
An Upside Trap Before Downward Continuation
On the initial move, bitcoin is most likely to break to the upside as an ascending triangle but this is expected to be a bull trap, said trader Jonny Moe.
An upside trap means downward continuation that will take us to $9,700.
— Nik Patel (@cointradernik) August 18, 2019
According to analyst The Cryptomist, Bitcoin has broken down a rising wedge and now we are testing sym triangle resistance.
“If we break below, (approx 10.1k) then bulls are in big trouble,” she said.
The Cryptomist has previously emphasized on the gap left by CME Group’s Bitcoin futures being the force behind Bitcoin’s drop to $8,500.
However, a drop to this level means 50% retracement of 2019 high move.
As for the gaps, they are not meant to be filled, said economist and trader Alex Kruger.
“Even though gaps often fill, gaps are not meant to be filled. Gap filling is a combination of random variations (price moves), self-fulfilled prophecy (traders assign value to gaps), and lack of support/resistance within gaps (i.e. no trades inside),” explained Kruger.
Large re-accumulation Happening
Despite it being a weekend, Bitcoin is doing nothing new.
We are still waiting for a close below $10,025 that would lean to bearish while a close above $10,800 is bullish for the leading cryptocurrency, said crypto investor and trader Josh Rager.
And if Bitcoin breaks above $12,000, bulls will be back into the beast mode.
“Above 12K price enters hot air territory i.e. little resistance. Price will eventually break out and go vertical before starting to fill in,” said Kruger.
In a separate analysis, Rager shared how the current Bitcoin price movement looks like “one large re-accumulation” happening after big players took profits at $13,900, the 2019 high in late June.
According to him, the price could drop down again but “highly unlikely” that it falls below 20 MA, at high $8ks currently.
In the short term, a drop is expected but the bigger picture is much larger.
“$BTC will eventually break through $20K, in 2020 or 2021, and once it does, it should trade $30K, $40K and $50K fast,” Kruger said.