Bitcoin [BTC] has been trading in a tight range since the drop below $9k last week. It has formed a parallel trading range between $8250 and $7930. Analysts like Tone Vays and Sawcruhteez grew increasingly apprehensive of a break-down or a bounce to the top of the channel.
The support around $8000 is also turning into resistance on shorter time-frames. This flipping of support is currently putting a lot of selling pressure. Moreover, $8000 has also acted a strong psychological level since the drop last week.
The next region of support that has been predicted for the fall has been around $7300-$7500. According to popular analysts, a break below it could trigger targets of around $6300-$6800. Sawcruhteez said in his update,
I’ve been long term bullish for a while now… Still looks like a long-term bull market where I want to buy dips, but that could change pretty darn quickly.
A different bull market
The parabolic move this year initiated a new bull market for Bitcoin. However, it has been in a down-trend since its high at $13,800. The price has pulled back by over 42% from the highs.
Nevertheless, while the analysts still believe that it is a bull market, many indicators have been pointing otherwise for the first time.
The Price moved below the 200-Day Moving Average. While a momentary break should not change the bullish situation, a continuation is threatening a bearish cross. The longer Bitcoin trades below $8000, the probability of bearish crossover between 50 and 200-EMA and 128 and 200 Day Moving Average increases sharply.
The trading in the next couple of weeks should be detrimental for weak hands, who’d flip their positions at the break of a dime.
The price of Bitcoin [BTC] at 4: 00 hours on 30th September 2019 is $7972. Hence, the monthly which opened at around $9500 is coming to a close. Sawruhteez also pointed out that the third consecutive bearish months are the first instance in a bull market.
As the old saying goes,
“Markets can remain irrational longer than you can stay solvent.
The likelihood of a test of $7000 levels is likely. Moreover, the trading in that range would be the defining moment for the current bull season. That said, it Bitcoin makes a break above the channel mentioned above, an opportunity to buy at the current price might never come again.
Do you think Bitcoin will flip the trend to the bearish side? 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