Bitcoin [BTC] made a brisk move above $10,000, once again rejecting bearish trades below the $9k range; the low this time was around $9510. The price of Bitcoin at 3: 15 hours UTC on 25th July 2019 is 10,102. It is trading 4.35% higher on a daily scale.
The $10k mark is forming a healthy psychological level for short and long positions. The short orders fell drastically as Bitcoin moved beyond it. B.Biddles, crypto-analyst, and Trader noted that Bitcoin was giving mixed signals. Nevertheless, the recent surge has also forced traders to close short orders. He tweeted,
A lot of shorts just became not-shorts
He also noted that macro signals are pointing towards a bull run. Richard Heart, angel investor and a trader have quite consistently projected $8500 as the next correction level. According to him, it would be a massive buy signal, and Bitcoin would break strongly bullish above it.
Is Bitcoins’ Volatility Still a Reason for Worry?
Nevertheless, Bitcoin price seems to have reversed a $1000 above his prediction. However, Bitcoin’s volatility continues to haunt its utility as a safe haven. Richard noted in a tweet,
I bet you didn’t know #Bitcoin is more volatile now than it was in the 100x run from $200 to $20,000. The last time it was more volatile Was the 2 months around $20k. Many believed futures, options, more participants and institutional players would reduce volatility. It didn’t.
Bitcoin [BTC] Futures trader, Jim Luorio, who had for long supported Bitcoin this year, suddenly exited it and it was due to the volatility itself. In response to Bitcoin vs. Gold, he recently told the media,
“People flocked to gold and bitcoin. Bitcoin all of a sudden has shown some drastic volatility over the last two weeks. Including a $3000 drop in a about a minute two weeks ago. To me, that kind of axed it off the list to what is a good proxy of FIAT currency. Bitcoin is out. I like gold the best.”
However, the signal which measures the speed of price movements is projecting a brighter picture. The RSI signal is currently in the oversold range, given we are in a bull market.
The relative strength index was considered over-bought during the initiation of the bull run this run. This was a strong indicator reason why people held onto short positions. Nevertheless, the volatility in Bitcoin and the bull market explains the market characteristics closely.
Since we are in a bull market, the RSI oscillates between 40 and 90. Currently, the RSI is testing support at the lower range at 43. Hence, we are currently testing the support level. A break above this level could be significant. However, it plummets, it might put an end to the bull market.
Mati Greenspan, the Senior Market Analyst at eToro, also indicated that $8500 would be a good buy signal. However, a break below $7,200 should be seen as bearish.
Do you think Bitcoin will continue uptrend above $10,000 or break below it again? 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