Bitcoin Fundamentals Call for $8,000, But BTC Could Fall Lower If Resistance Doesn’t Hold
- Bitcoin drops down to $9,855 level, currently above $10,300
- Fundamentals say BTC price should be around $8,000 right now
- Huge rejection off of weekly resistance, last time this happened at this exact same level that took us all the way down to $6000
Bitcoin is in a deep red mode.
The leading cryptocurrency is under correction since going above $13,000 on July 10th. Just like the last time, on June 26th when we nearly touched $14,000 only to drop down to $9,600, this time as well we have dropped below $10,000.
Since hitting $13,000 earlier last week, we have been on a downtrend, going as low as $9,855.
At the time of writing, the flagship cryptocurrency has been trading at $10,300 with 24 hours loss of 4.06 percent. The trading volume is still low at just $2.3 billion.
According to the crypto analyst, Timothy Peterson, the fundamentals say Bitcoin price should be around $8,000 right now.
Per the chart shared by him, the 30-day median value of Bitcoin falls just above the $8k level at the parabolic chart based on the n-squared model. On the two axes of the chart, y shows the price of Bitcoin while x axis represents active accounts.
— Timothy Peterson (@nsquaredcrypto) July 14, 2019
During the 2017 bull run peak when the BTC price surged to $20,000, the active addresses surpassed 1 million, as per the data provided by Bitinfocharts. In 2018, these active addresses remained between the range of 400k and 600k.
In 2019, these numbers increased consistently going just above 900k during the bull run of the last three months in 2Q. Now, in July we have yet again tumbled down to 500k.
But it’s not all..
$8k is not the maximum limit of the pain. According to analyst Don Alt, the huge rejection of weekly resistance we saw this time, happened last time when we were at the exact same level, $11,500.
The last time that rejection took us all the way down to $6,000, points out Don Alt.
For now, the Bitcoin price has resistance at $10,800 while support is present at $9,500 and $8,400.
An even more bearish picture…
$BTC meme fractal.
Let me start this off by saying that I don't really trade fractals, I just observe them, mostly for fun.
Just noting the fact that current price action looks pretty similar to the last top.
Would be ironic if the '19 top played out the exact same way '17 did. pic.twitter.com/I44Z6xubZD
— DonAlt (@CryptoDonAlt) July 14, 2019
Analysts are feeling bearish right now, but it is only for the short term. Bitcoin bull and Fundstrat’s Tom Lee has emphasized that crypto winter is over while investor and trader Josh Rager is confident we are very much in a bull market and it’s just a pullback.
So, buy the dip and keep stacking your sats!