Bitcoin Struggling to Hold Bullish Structure But Not the Beginning of a Bear Trend
- Overall, healthy retracement and pullback from a 50% upwards move
- $11,000 will come soon if Bitcoin breaks above $10,300 – economist and trader Alex Kruger
Bitcoin has fallen below $10,000, as it has done at least five other times this month. After dropping to $9,480 yesterday, currently, BTC/USD is trading at $9,643 with 24 hours loss of 1.33%, but it is still up 30% in 2020 so far while managing the daily trading volume of $922 million.
Just like the price, this week, unlike the previous ones, the volume on the top ten exchanges with real volume has taken a hit and fallen below a billion dollars. And falling volume is not a good sign.
February 2020: the struggle for $10k, an important psychological number🍿 pic.twitter.com/ehSC1lKxsc
— PlanB (@100trillionUSD) February 24, 2020
$11,000 Soon If We Break $10,300
Before taking a drop, bitcoin has been looking good and “Once it clears $10,300, I think the price will steamroll 10,500 and get to $11,000 soon,” stated economist and trader Alex Kruger.
But now that we have fallen, “Area below 9K is very attractive for shorts to target and longs to open. Excessive leverage has been largely rinsed out. Bigger picture players are still looking at new year highs. I still expect higher prices prior to the halving and think once $10300 breaks should see $11K soon,” said Kruger.
Despite the tumble, the trader says this is not the beginning of a bear trend.
As we reported, while bitcoin has been doing bitcoin things, gold has gone out of the control hitting a fresh 7-year high while the stock market took a huge drop before recovering on President Donald Trump’s positive tweet.
But the fact that the bounce came at the same moment as in the US stock market, it means the leading cryptocurrency is a risk asset, points out analyst Mati Greenspan.
Check out this short term graph showing #bitcoin getting a critical bounce at the exact same moment as the US stock market and crude oil.
If anything, it's really showing signs of behaving like a risk asset. pic.twitter.com/jILohCtFC6
— Mati Greenspan (@MatiGreenspan) February 24, 2020
Moving forward, analyst Bob Loukas still sees bitcoin's price going to the $8,800 level before climbing to nearly $12,000.
$BTC showing no hedging qualities the past week.
Historically, mostly uncorrelated to any asset though, with a wonderful 10yr track record. That's why it deserves the allocation. pic.twitter.com/XAubRNpx4h
— Bob Loukas (@BobLoukas) February 24, 2020
But the market sentiments have already turned to fear, which trader Crypto Michael says is usually a “good signal.” And as long as the support holds, bitcoin will remain intact at its current position.
“Overall, still an healthy retracement and pullback from a 50% upwards move,” said the trader but a drop below $9,300 would change things.
$BTC really loves testing this support around $9530. How many times will it hold?
— The Wolf Of All Streets (@scottmelker) February 25, 2020
Meanwhile, analyst Jacob Canfield says, “Bitcoin struggling to hold its bullish structure and testing the 4 hour 200EMA for the 3rd time. If this level fails, I'll be looking to scalp a long from $9050-$9200 around the 61.8 fib and the 350EMA.”
“No trade zone for me at the moment after the bearish break down. High risk,” added Canfield.