The selling pressure by Bitcoin [BTC] bears seems to have slowed down for a moment. The price is holding on above the 200-Day Moving average around $8340. However, analysts still predict violent moves in Bitcoin on either side.
The bearish candlestick recorded on 24th September recorded a drop of about $1200. Many see this as an opportunity to ‘buy the dip.’ However, the short term momentum seems to be with the bears. According to Tone Vays,
The most likely path at this point is a rebound back to the area of the break-down (around $9450). Then another break-down.
The next break-down according to him to drag the price down to $5000. He cited Willy Woo‘s observation on prior Bitcoin movements to explain the low probability of that happening. He said,
According to him [Willy Woo], we have never crossed the 200-Day moving average while being in a bull market. And he believes we’re in a bull market. I also believe in the bull market.
However, Vays predicts that “weird things can happen in a bull market that is unprecedented” and a fall to $5000 is likely as well. Nevertheless, halfway from the descending triangle near $7000 is where he and the other analysts are counting on a reversal.
Zoran Kole, a crypto trader, and analyst tweeted,
$ Bidding 7.5-8k for a swing. 7.3 is invalidation. 7.4 is the bulls last stand before a subsequent 6-9 month downtrending chop. Targeting 16k before the end of Q1 2020.
Hence, the sentiment in the market continues to be bullish eventually. Nevertheless, swing traders and intraday traders can expect lows before 2020. However, while Tone Vays sees a bull market even after the fall to $5000, traders see are seeing invalidation of bull market below $8300 and $7300.
Altcoins exodus which increased Bitcoin’s dominance by 20% this year is also seeing further downside. Analysts have suggested a further correction of major altcoins including Ethereum and Bitcoin [BCH] Cash.
Josh Rager tweeted,
“Can lose 20%+ more as Bitcoin likely hits $7ks again.” He also said,
“Scanned few alt charts USDT pairing, saw quiet a few bear flags on LTFs, Bitcoin also looks disgusting, think another leg down soon.. be safe out there fam.. “
Do you think that degradation is over or $7k is imminent? 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