Bitcoin [BTC] price consolidation above $8000 has been threatened by the bulls yet again as the price failed to break above key resistance levels for a bullish revival. The bears tested new lows at $7986 on Bitstamp Exchange. The low recorded at Coinbase was $8002. These levels coincide with the Fibonacci clusters acting at support just around $7980-$8040.
The price of Bitcoin [BTC] at 4: 42 hours UTC on 4th September is $8080 on Bitstamp. It is trading about 2% lower on a daily scale.
Tone Vays, derivates trader and analyst noted about the breakout, that
This red line (around $8050) is gonna be very very key tomorrow. If tomorrow we’re breaking below $8000. I’m gonna be very very bearish.
The trader sentiments have been further hurt by the impending death cross between 200 Day Simple Moving Average and 128 Day SMA.
Increasing bearish pressure is increasing the selling pressures. However, the squeeze indicator is at the threshold. Hence, it’s likely that instead of a break-down, a reversal is witnessed. Crypto Fibonacci indicated the possibility of a reversal as well; He said that at current levels,
If you want to try and scalp this, fine, but be nimble and quick or you risk getting chewed up.
The support at current Fibonacci levels is considerable, and the bulls might be holding them. Nevertheless, below this level, traders expect panic selling. The likely area of support or reversal would be $7.3k-$7.5k.
Do or Die Moment?
The current price movements are critical as the result of changes should set-up the primary trend for Bitcoin [BTC]. After a bearish bout in 2018, BTC briefly turned bullish since April 2019. It recorded a parabolic rise to $13,800.
However, the trend seems to have reached a threshold threatening a reversal to bears. Moreover, a massive break-out is expected. The support lies down bellow $7500, while the resistances are as far as $8450 and $8800. Hence, violent price movements can be expected this weekend.
Nevertheless, Bitcoin [BTC] trading has entered the mainstream and is also finding utility as a safe haven. Moreover, the on-chain metrics are still strong and pointing towards a bull season. However, the on-chain can be affected by the price changes as well.
Do you think a drop is imminent or the bulls are looking to surprise? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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