Bitcoin is currently registering gains while making a slight upward movement. Already the price has started to take a backstep as reflected by the technical picture as well which is not looking good as per the analyst Rob Sluymers who expects the gains to be limited even if bitcoin do a turnaround.
Bitcoin in green, but don’t be too hopeful
Today, the world’s leading cryptocurrency Bitcoin (BTC) got a relief as it saw a hike in its prices. At the time of writing, Bitcoin has been changing hands at just above $6,400. Starting the day at $6,500 price level, it went to the $6,625 price level at one point. But soon the price slumped and hit $6,444 before ascending to $6,558 again, only to drop down at current price i.e. $6,413.
Bitcoin price has been only dropping since this month started and it’s only today that the prices saw even this much of green. It saw the rise of 1.08 percent in the past 24 hours, but if we take a look at the last about 3 hours, the price has taken rather a drop of 2.2 percent.
So, it seems to be a not so good picture right now. As expected, the market cap of bitcoin has also taken a hit and is currently at $110 billion. As for its trading volume, it is at $4.33 billion.
However, the silver lining in this gloomy picture is the BTC dominance level. When Bitcoin took a drop, altcoins slumped in tandem but at a much faster pace with substantial losses. The BTC dominance has risen to 49.1 percentage.
Technical backdrop is not at all looking good
For the crypto bulls, the technical picture is still displaying danger. According to Rob Sluymer of Fundstrat Global Advisors, the technical outlook is bleak for bitcoin even though it is managing to stay above $6,000 mark.
In his research note, he stated:
“At the risk of stating the obvious, the crypto technical backdrop continues to deteriorate despite news flow that many investors would argue is incrementally improving.”
As for bitcoin price pause above $6,000, it is not surprising as bitcoin is oversold at the moment. Talking about the price movement to MarketWatch, Sluymer explains that on a drop below the $5,900 level, the supports will be provided at $5,500, $5,300 and then $3,520 level. This last point is from where the price retraced back in December and prices skyrocketed.
Sluymer is not feeling optimistic about the price as he says we aren’t at a time that “it’s so bad it’s good” as he adds:
“With this pattern in place, expect rebounds to stall at a similar retracement of the July rebound, which coincides with its declining 15-day moving average near $7,500.”
He also shared on the contrarian view of Tom Lee, managing partner at Fundstrat who is still hopeful for a year-end rally and price to hit $25,000, “While we appreciate the contrarian sentiment (above), beyond short-term trades, we don’t believe the technical decay has reached the type of extremes yet to support a major contrarian call.” He expects the gains to be limited even if bitcoin manages to swing back.
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