Bitcoin At 10K Is The New 6K but Instead of Breaking Down It Will Grind Up: Analyst
- Bitcoin drops over 3% to $10,050
- Unlike $6,000, analyst says $10,000 will hold
- Price compression is reducing and if the price breaks down lots of interest right below $8k, says trader
- But an alt party still might not start
August has been quite a volatile month for Bitcoin.
Starting the month at around $10,000, just in the first week, we jumped above $12,200. This spike in price was the result of macro factors, China’s yuan falling below an important physiological level of 7 against the US dollar and the fear of a currency war.
By mid-August, we wiped out all of these gains, falling below $9,500.
Experts have been expecting Bitcoin to make its way to $8,500 and even lower. But the flagship cryptocurrency had something else in mind as it continues to trade around $10,000, a few hundred dollars up and a couple of hundred dollars down.
As an analyst, Murad Mahmudov says,
"~10K is the new ~6K", but instead of breaking down it will hold and start grinding UP.
You heard it here first.
— Murad Mahmudov 🚀 (@MustStopMurad) August 27, 2019
It’s to be seen if Bitcoin will finally pump upwards, making $8k a distant dream.
At the time of writing, BTC/USD has been trading at $10,050 with 24 hours loss of 3.08% on Bitstamp while managing the daily trading volume of $712 million, as per Messari.
According to the crypto trader and investor Josh Rager, $8,000 is still in the game if Bitcoin price breaks down.
$BTC Daily Chart
The price compression is reducing gains from swing lows to swing highs: 86%, 36% & recently only 15%
Wanting price to keep closing above $10,025
Large gap in VPVR (supply/demand areas by price) and if the price breaks down lots of interest right below $8k pic.twitter.com/fVvjH4OLuY
— Josh Rager 📈 (@Josh_Rager) August 27, 2019
However, if Bitcoin drops below $8,000, does this means altcoin season is coming?
Well, that’s not the case.
For an alt party, Rager explains one would assume that people would move their money in altcoins, choosing them over Bitcoin if BTC breaks the $8k level.
But, BTC at $8,000 is “heck of a deal,” a price level coveted by buyers who have been looking for a good buy the dip opportunity. And this dip his would be about 45% off from 2019’s high of nearly $14,000 recorded in June.
So, even then, people would run to Bitcoin, to take advantage of the discount before we jump to make new all-time highs.