A new week, but the same bitcoin price level.
With 0.45% gains, BTC/USD is trading under $9,100 with just $860 million in ‘real’ trading volume. The greens have altcoins seeing some gains as well.
This is actually the 9th week, bitcoin has been consolidating within an $8700 – $9700 range.
Economist and trader Alex Kruger is expecting a “bloody beginning of the week for risk assets.” He cited the coronavirus cases getting out of control in some US states increasing odds of renewed lockdowns and Coca Cola stopping advertising combined with quarter-end pension funds equity outflows for red markets.
For the world’s leading digital asset, the good thing is the on-chain data that supports an upwards move in the coming months.
This on-chain data is the amount of bitcoin not moved in a year, at 61% it is reaching the early 2016 level that preceded bitcoin’s bull run to $20,000.
The last time we saw this amount of #Bitcoin that had not moved in over a year, was in early 2016 – preceding $BTC's bull run to $20k.https://t.co/lquCOcHXPX https://t.co/Hvf4lW72U6 pic.twitter.com/xGXYdqSewE
— glassnode (@glassnode) June 28, 2020
So, we may experience a correction before moving up.
— Mohit Sorout 📈 (@singhsoro) June 28, 2020
Yet another bearish scenario is shared by trader Coiner-Yadox who shared how each time the bitcoin gets a weekly Stoch cross down, Stock over 70 is when we get a “pretty heavy correction each time.”
This pullback was seen even in the massively bullish market in 2017 so, looks like, it’s time to prepare for a move down. These daily Stoch has been reportedly giving “very good signals” since 2017’s top.
These downwards moves have been of varying percentages that have been as low as 23% and as much as 80%.
“The closer we get from a fakeout was June 2019, but there was still a -16% correction before continuation up,” noted the trader.
To some, bitcoin is looking more like a “launchpad” than a local top and this time looks different than the natural – “things may need to go down before they really go up.”
If we do break to the downside, the consensus is $8,000 to $7,000 while some are interested in “much lower.”