Bitcoin dropped 30% following a pullback after reaching the yearly high near $13800. The Pullback in price was stretched till $9600 and instantly reversed its direction to trade above $10500, it later also broke the $11,000 mark.
The price of Bitcoin at 4: 00 hours UTC on 3rd July 2019 is 11,364. It is trading 11.8% higher on a 24-hour scale. Peter Brandt, a leading chart analyst, classified this pullback as ‘mild.’
B.Biddles who is more often than not bullish in Bitcoin tweeted last night that $9000 seems to be forming a ‘new solid Earth’ support for Bitcoin. However, he was apprehensive of the rise this morning. He tweeted,
This is a cool pump, I hope it sustains, but I’m not sold just yet. Still seems like liquidity up here is non existent… We’re lacking buyers /and/ sellers. Would love to be proven wrong, but I am not comfortable opening a position yet.
Tone Vays, Derivatives Trader and chart analyst, also noted a similar sentiment in his price analysis update. According to him, while Bitcoin broke to 30% confirms a pullback it was actually the “bare-minimum” level required for it. Since he sees bearish targets extending to about 80% from the high, even he isn’t entirely convinced by the bounce. On the weekly and daily TA, Tone advocated in taking a neutral stance.
Much of Bitcoin’s rise during the last month occurred during the weekend which created huge gaps between in the futures markets on traditional exchanges which operated during the working days of the week.
While this has happened in the past as well, historically all gaps have been filled until now. Dovey Wan, a Chinese Bitcoin trader, and analyst, also suggested the gaps as relevant targets for the pullback. Richard Heart, angel investor and early Bitcoin adopter has advocated that analysis ever since the withdrawal began. He tweeted,
#Bitcoin 1 gap down. 1 gap to go.
Nevertheless, Richard is a bull post that, so much so, that he says it will reach “the moon.”
Moreover, according to Willy Woo, who is a strong advocate of the NVT analyst and on-chain volume drew the current ledger activity with the price. According to him, the ongoing bullish break is actually supported by a lower ‘actual’ on-chain volume characteristics than before; however, he is still bullish. He tweeted,
Notice how few coins are changing hands on-chain in this cycle. I put this down to more HODL activity off-chain, and more lockup.
Hence, while uncertainty and volatility in Bitcoin are still very high, analysts are looking forward to this asset great. However, the trajectory that is followed to reach its bullish targets could be filled with higher ‘ups and downs.’
Do you think this move will break yearly highs near $14,000? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst 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