Bitcoin [BTC] went down just below $14,000 by almost 12% in a flash on 26th June 2019. While Cryptocurrency Exchange, Coinbase was blamed for the issue because of their lack of preparedness for the surge in volume. However, looking back at it now, it was a combination of the probable end to the frenzy which drove the prices by $2800 in less than 2 days.
Moreover, the rise in bitcoin this year has been around 300% from yearly lows at $3434 to a high above $13800. According to Jim Luorio, a trader at CME said in an interview,
“If you talked to me 2 days ago about this is ready to become a real live Exchange or real live currency… I would have said maybe it’s getting closer. Not after I see the way its move in the last 24 hours, it’s not ready yet. But anything that can be added to it maybe someday it’ll grow into that.”
According to him, Bitcoin will trade in the $10000 – $13000 range for a while to shake out the weaker hands.
Interestingly, $8800-$9200 is also forming a strong support level according to two analysts who suggested it independently. According to Richard Heart, angel investor and analyst, the weekend gaps created in the CME futures market due to Bitcoin’s price surge over the weekends are expected to be filled backward. He tweeted,
“A 40% # dip down to $8400 would be consistent with the numerous dips form the 2017 bullrun. The high premiums and funding on perpetuals and futures give extra fuel to capitulate down there.”
He also said that “CME # futures have basically filled all gaps” pointing out at the current rise.
Another Analyst, who goes by the pen name, Financial Survivalism, suspected a rising wedge on the 15-hour graph which could drive prices up to $12400. This was also suspected by another trader B.Biddles, who is looking suspected that Bitcoin might be forming support at current levels. He tweeted,
$12,400 target from the 15m falling wedge. I don’t usually pay attention to patterns on small TF’s but will if the market is moving fast. Think this could provide the ‘B’ in the 4h ABC correction. $
Nevertheless, the wedge signifies a larger movement at play here on the 4-hour chart which could drive down to $8,500 levels.
The volatility in Bitcoin is high which was also acknowledge by Bitcoin permabull, Mike Novogratz. On an update from 27th June, he noted,
“I wish I sold a lot yesterday, I think we’re gonna be in a range between $10,000 and $14000. I know we put a new tradable top in yesterday.”
Where do you think the price is headed next? 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