Bitcoin’s [BTC] failed attempt at a break-out the last day has significant implications on its price analysis. This is because it comes at a time when the market sentiment has a high bullish penchant.
A couple of reasons or catalysts might have caused the drop, including Jerome Powell’s criticism of Libra. Moreover, the fact that Bitcoin has taken a negative turn on the day Fed announced a rate cut view also raises significant concerns as to its utility as a safe haven.
Nevertheless, TA analysts like Willy Woo have a much more bearish outlook for Bitcoin. In a recent analysis with Tone Vays and Tyler Jenks, Willy Woo spoke about the NVT analysis on Bitcoin. It is a metric that takes into consideration the on-chain volume and market cap of Bitcoin.
According to Willy Woo’s NVT analysis, the market cap has far exceeded on the on-chain volume at this moment. Hence he said,
“So I am really cautious. Now to say its a good time to say this is the top. This is could hang around this region for a long time before it pulls back. But we’re not really in a situation where we’re set up to do a long term bull run.”
He also suggested a more significant pullback to $8000 levels before another bull run begins. Moreover, Tone Vays believes that there is a further higher probability of a pullback below $8000. Vays tweeted,
Always Bullish on #, but what does it mean for me to be Bullish on $? – It means the probability of New All-Time Highs at $20k is Greater than New Swing Lows at $3k –
This ‘can’ change with a drop under $10k – It just depends on IF, HOW & WHEN it drops under $10k
Nevertheless, another prominent trader, B.Biddles, is however extremely bullish on Bitcoin. He suggested the formation of an ascending triangle on the 12-hour chart. According to B.Biddles analysis, Bitcoin has several optimistic possibilities all pointing towards a bullish break. The triangles project a break above $12,5000-$14,000 with targets ranging between $14,500 to 18,500.
Mati Greenspan, the Senior Market Analyst at eToro, has also suggested that the $10,000 is a critical level to watch out for in the next couple of days.
Do you think Bitcoin will continue its bull run or consolidate below $10,000? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com