Crypto Analysts Flip Bullish as Bitcoin (BTC) Price Rejects from Daily Support
- $9,500 could be a near term double bottom
- But a close under $9,420 would be bearish
- Ultimately bearish to $7,500
Yesterday, Bitcoin dropped down to $9,130 and in about half an hour, we were back above $9,600.
Today, we made it to $9,725 but has since gone down to $9,363. Currently, BTC/USD is trading at $9,456 with 24 hours loss of 0.59 percent. Though real volume is still low at $847 million, trading volume has seen a slight increase from $600 million, as per Messari.
$9,500 Could be a Near Term Double Bottom
As per weekly basis, after two weeks, Bitcoin price arrived at the outlined $9,500 support. Analyst, DonAlt says if this is a bull market pullback, this is where he expects it to bottom out.
“I've been big timeframe bearish since $11500, flipping neutral to bullish here,” says DonAlt.
If not $9,500, the next support is present at around $8,300.
Just like DonAlt, market analyst and trader, Benjamin Blunts is bullish as he says the rejection from daily support has him thinking this could be a potential near term double bottom within a larger distribution range.
“It's hard to be bearish here after that daily candle close,” says Blunts.
But a Close under $9,420 would be Bearish
On Bitcoin 1-day chart, a close under previous daily support at around $9,420, would be bearish, says crypto investor and trader Josh Rager.
Though the Hammer reversal candle we registered is bullish, Rager is neutral at the moment.
The Hammer candlestick formation is created when the open, high, and close are roughly the same price.
High and close being the same is considered a stronger formation because bulls were able to reject the bears and further push prices past the opening price while open and high being the same is less bullish, it’s still bullish.
This pattern mainly occurs at the bottom of the downtrend.
Ultimately Bearish to $7,500
However, Bitcoin price needs to break above $10,830 and close for higher high. On the higher time frame, the price is in a potentially large range, Rager adds.
Blunts is also ultimately bearish on Bitcoin ad expect it to drop down to $7,500 before we continue our way to another all-time high.
His theory is that the Bitcoin price will push to range highs in order to clear out late shorters. From here, a decline to $7,500 as the markets don’t move in straight lines.