The volatility in Bitcoin price and extreme trend movements more often than not keeps the traders guessing the direction of Bitcoin movements. The bullish moves in Bitcoin in the past couple of months have restored the investor confidence in the asset again. However, the extremity of the rise also seems to have given an opportunity to bears.
Yesterday marked at the end of three weeks of continual bullish gains in Bitcoin with a slightly unusual close. Bitcoin [BTC] broke above the $13800 mark on 26th February. Nevertheless, the rise was instantly met with a 10-15% correction. Moreover, as the price was looking to find support near around the $12,000 region, the bearish pressure has further pushed it down to test $10,600.
The price of Bitcoin at 4: 30 hours on 1st July 2019 is $11050. It is trading 7.92% lower on a daily scale.
The 4- Hour Chart
According to a leading group of analysts from the Hyperwave channel on Youtube, Sawcruteez, Tone Vays, and Tyler Jenks suggested that Bitcoin is trading at a critical price. The current range $10,700-$11,100, if broken below could commence the bearish movements in Bitcoin.
Tone Vays emphasized on Sequential analysis, while Sawcruteez and Jenks reached conclusions from Trendline analysis and SAR analysis. Nevertheless, they seemed to arrive at the same critical point for the apprehended trend reversal.
Weekly and Monthly SAR Analysis and Brandt’s Analogy
Moreover, by extending the SAR to monthly and weekly charts, Sawcruhteez suggested that $9320 will be strong support as it forms the weekly SAR currently.
Peter Brandt, another leading chart analyst, and trader recently cited the analogy between the NASDAQ 100 price movements in 1999-2000 with current Bitcoin price movements. While the analysis has a bearish ring to it, it suggests a break below the same level the market analysis is pointing at above.
While the monthly and weekly charts were still bullish, the apprehensions due to the absurdity and uncertainty about the stability of the parabolic rise have kept the analysts at bay. They haven’t ruled out bearish possibilities till $7000 level. However, as Tyler noted, they are still bullish as long as Bitcoin holds above these critical levels.
Furthermore, the trio also discussed the FOMO in Bitcoin from google trend analysis. Tone Vays noted,
“The interest in Bitcoin is around the same level as was before May 2017 when the price was around $1200”
While Sawcruhteez was bullish on it, Tone Vays suggested that the slow ‘buy bitcoin’ score could be both a bullish or a bearish indicator.
Where do you think the price of Bitcoin [BTC] is headed next? Please share your views with us.
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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