Bitcoin price drops $ 1.500, its mid-term trend remains incredibly unclear, what’s next?
As for the Bitcoin market, cryptocurrency analyst Dave the wave said that Bitcoin price was ready to correct to $ 7,000 after seeing that harsh rejection above $ 10,000.
Bitcoin price is ready to decrease shortly
Dave has previously predicted that Bitcoin will bottom out in 2019 at $ 6,400, and further, BTC topped around $ 11,000 earlier this year.
After sharing the chart below on June 3, Bitcoin’s macro price action from a high of $ 20,000 until now looks quite similar to the consolidation after the 2013 bull market. During the consolidation process, Bitcoin has twice retracted the growth shown in the chart below. During this cycle, Bitcoin did just that once, indicating it would drop to $ 6,000 – $ 7,000 again before a full rally.
The chart shows that Bitcoin’s price action from the $20,000 looks very similar to the consolidation after 2014-2015’s bear market
Then, John Bollinger, the technical analyst prominent behind the Bollinger Bands indicator, warned traders as follows:
“The is a Head Fake at the upper Bollinger Band for $ btcusd, time to be cautious or short.”
This comment was made regarding his index, suggesting that Bitcoin was strongly rejected after attempting to break out of the current range. Although he could expect a correction, John is still bullish on Bitcoin.
Dave noted recently that the Moving Average Convergence Divergence (MACD) for Bitcoin (on the weekly chart) is well situated for the cyclical move up. This move higher should bring the asset to new all-time highs, as the chart below suggests.
The analyst said about the chart seen below:
Though a short term correction may well be on the cards, the longer term is looking super-bullish. Weekly MACD well situated for the cyclical move up as compared to last time…. pic.twitter.com/pKtWwF5ZIw
— dave the wave (@davthewave) May 30, 2020
Adam Back, executive director of Bitcoin Blockstream development firm, predicts BTC price will reach $ 300,000 in the next five years. This would imply a price increase of about 3,000% from the current market price.
Moreover, a large amount of printed money and the growing trend among investors in halting their investments with Bitcoin will push assets to these levels. Besides, when real estate and bond risks are highly valued, investors will turn to Bitcoin.
The medium-term trend of Bitcoin is still unclear
Currently, there is a model that shows the precarious state of cryptocurrency. However, there is a diagonal trendline that could help invalidate this pattern, and one analyst is even noting that “all bets are off” for Bitcoin if it breaks $ 10,500 – suggesting this will be the level that catalyzes a massive upswing.
DonAlt analyst said there was a bear-favoring triple top formation that is now in play, which could lead it significantly lower in the weeks and months ahead.
He said:
$BTC update:
Almost…
We now got a triple top in play.
That makes the support areas I outlined even more attractive as a buy. pic.twitter.com/eyo5KGnXfY— DonAlt (@CryptoDonAlt) June 2, 2020
However, there are a few technical factors that provide insight into the short-term prospects of Bitcoin and the cryptocurrency market.
CryptoUB analyst points out that a recently formed cross trend line is a factor that can help guide it higher in the coming hours and days.
Source: @CryptoUB
Still, the $ 10,500 level is undoubtedly an essential level that buyers need to overcome if they want to spark any kind of macro uptrend.
This is a position confirmed by the Byzantine General. He explained the importance of this level as follows:
“I’m not saying it happens right now, but when 10.5k breaks, all bets are off.”
All factors considered, now seem to be a critical moment for Bitcoin.
Read more:
- Here Are Three Major Factors That Caused The Bitcoin Price Drop That The Traders Should Know!
- The Extreme Volatility Has Seen $230 Million In Both Longs And Shorts Liquidated On BitMEX But Not Hurt Bitcoin Price