Bitcoin Price Analysis: BTC At a Precipice, A Push to $10,000 or A Drop to $6,600 Is Possible
Today’s Bitcoin (BTC) News
The Bitcoin market is back to its usual, hot and cold. While investors and traders are upbeat, it’s all about the underlying momentum. Following a stellar performance in the last couple of weeks, the question now is whether buyers can muster enough momentum and propel prices to new levels. It would be ideal if BTC break and closes above the psychological $10,000 mark.
That, and as we have reiterated before, would open up flood gates for higher highs towards $20,000 and even $50,000-that’s the level Arthur Hayes of BitMex believe BTC will close at in the next six months. Ideal? Yes, but is there gas? That’s the question everyone is asking now that we have a doji in the weekly chart following strong upsides that saw candlesticks band along the upper Bollinger Band which from a technical standpoint is overwhelmingly bullish.
Presently, analysts are skeptical of further upsides. Citing dropping trading volumes as well as last week’s possible “Evening Star”, they claim that odds of BTC dropping back to $8,000 or worse lower, could as well be on the pipeline. Nonetheless, traders can remain upbeat and because of supportive fundamental factors, a situation where BTC will blow the $9,000 top off cannot be discounted despite the obvious lack of confidence.
Remember, the US and China are in a tussle of supremacy. Ready to release a White Paper, China adds that the US is the one to blame for the breakdown in negotiation. Possible government intervention could see BTC benefit from capital inflows from the wealthy wary of detrimental consequences as the two “bulls” lock horns.
BTC/USD Price Analysis
1 BTC/USD =$49,885.8901 change ~ 5.54%
From the chart, BTC is down 2.7 percent in the last day and losing ground week-to-date. However, that is not to say buyers are floundering and bulls could bottle. What we have in the weekly chart, and as aforementioned is an over-extension. Buyers are in control, true, but following last week’s doji closing outside the upper BB as volumes shrink could see BTC correct to support levels.
Note that in the daily chart, BTC is technically in a bullish breakout pattern with support at $8,500. However, the lack of higher highs above $9,000 clearing May 2019 is bearish and hints of a trade range in smaller time frames. Therefore, while aggressive traders can take advantage of this consolidation and buy the dips, conservative traders can wait for clearance above $9,000 complete with high trading volumes exceeding 47k of May 13th in a trend continuation phase.
Before then, patience is the best trading strategy. Prices are within tight trade ranges and the middle BB is flattening hinting of low momentum. Besides, losses of May 30th are yet to be recovered and since bears could be in control thanks to the high trading volumes accompanying the meltdown-31k against 19k of May 26th, bears are in control from an effort versus result point of view.
Therefore, although optimistic, any dip below $8,000 could spur a sell-off towards $7,500 and later $6,600.
All of Today's Bitcoin Price Analysis, Chart Forecasts and Industry News
All Charts Courtesy of Trading View—Coinbase
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision