The exhaustion of the Bitcoin bulls came to the realization yesterday as Bitcoin [BTC] broke below the parallel channel between $10,000 and $13,000. The price of BTC at 3: 15 Hours UTC on 17th July 2019 is $9392. It is trading 14.2% lower on a 24-hour scale.
The dominance of Bitcoin has risen past 66%, which is another signal of weary for altcoin holders.
The timing of Libra’s Senate Hearing in the US also couldn’t come at a better time for Bitcoin bears. While the Senators were not entirely against the payment system, both the democrats and republicans expressed profound disregard for Facebook. In all probability, this will cause a long delay to the launch.
Remember ETF Approval? However, past performance is not an indication of future results. Nevertheless, it acted a catalyst to end to the bull run of the market. B. Biddles, crypto-analyst, and trader tweeted,
“To be clear, I believe $ trend has reversed at least temporarily. 9.65 was my level for that. I suspect bull run is over — but not bull market…”
Furthermore, it also marks an end to Bitcoin’s parabolic run, which began in April. Peter Brandt explained in his recent tweets how to trade a parabola. According to his analysis, Bitcoin could see a drop to around $3000. He noted in a recent tweet,
While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. Total cap should correct 80%. Most of the damage of decline will occur to altcoins.
Tone Vays, derivatives trader and crypto-analyst has similar views as he stressed in his daily update,
“I do believe than an 80% correction from this unreasonable exponential move is still possible.”
Furthermore, Tyler Jenks and Sawcruhteez’s Hyperwave analysis also suggest bearish trends in the short term of gigantic proportions. Jenks has been often called upon on Twitter because of his $1000/ Bitcoin prediction. Nevertheless, while he believes that is a possibility, he also expects a reversal near above $7500.
Bitcoin is an emerging asset class; hence, most traders still believe in the long term price of Bitcoin. Willy Woo, who emphasizes on NVT analysis suggested from the rising on-chain volume that a drop till $8000 is on the cards. However, the probability of going lower is less.
The shifts in Bitcoin sentiments are have been massive over the past couple of weeks. Mati Greenspan indicated yesterday how the massively the Fear and Greed index of Bitcoin has changed over the last few days. The massive price volatility and regulatory oversight tend to reverse the market sentiments quickly.
Do you think Bitcoin will turn full bearish now or there is more steam left? 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