BTC/USD Struggles to Break Above $8K; Gold Bug Predicts Correction to $2K Level

By Lujan Odera
October 19, 2019 Updated July 24, 2020
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bitcoin price
  • BitMex’s XBT Futures hold above the $7,900 USD while analysts set sight on a possible $6,000 USD bottom.
  • Gold bug, Peter Schiff calls for correction in Bitcoin’s price to the $2,000s region.

Bitcoin May Dip Further Following Current Trends

Bitcoin is yet to bottom out following the current trends, as more price analysts ponder on the short term movement of its price. Since testing resistance levels at $13,800 USD in July, BTC bulls have relinquished their strength as the price fell below the $7,800 support levels earlier in the week. BitMex XBT Futures have since recovered from October lows at $7,749 ascending to $7,950 as at the time of writing.

However, the joy of holding out above its monthly lows at the $7,700s will be short-lived if the bearish technical indicators come to fruition. Since testing the $8,800 resistance levels earlier in the month, XBT futures bulls have struggled to hold out above the $8,000 level with analysts predicting a possible correction in price towards the $6,500 support level.

A short term squeeze on XBT Futures

Looking at the daily charts, there is a bearish momentum building upon the pioneer cryptocurrency as the price forms a falling wedge pattern. This indicates an ongoing bearish market with a possible reversal in momentum if the price breaks above the falling wedge resistance level in a bull market. It is a bullish signal if the price closes above the key resistance levels at $7,800 and $7,600 and tests major support at $7,500 USD in the coming month.

From a technical analysis point of view, the market does not look too rosy for the BTC bulls in the short term as indicators signals upcoming bearish momentum.  A further downtrend in price ensues as the price is set to test the key support levels at $7,800. A break below this key support may further press down the price towards the major support levels in the mid $6,000s.

A falling channel on the daily charts of BitMex XBT Futures (Source: TradingView)

The Moving Average Convergence Divergence (MACD) line is above its signal line but the bullish divergence has narrowed down signaling a possible bearish momentum. A bearish reversal is on the horizon as MA death cross also forms on the daily charts with XBT Futures pair bottom yet to be reached. The downward push in XBT Futures signals price will bottom out at $7,500 in the coming days or a wild swing to the $7,100s by the end of the year.

Bitcoin price to drop to $2000 region

The bearish sentiments in the market were further reiterated by gold bug, Peter Schiff who believes that BTC’s price is headed to the $2,000 levels in the near future. In a tweet on Oct.19, the CEO of Euro Pacific Capital said Bitcoin’s chart “looks horrible” with the price expected to drop to $6,000 in the short term. Furthermore, he says a head and shoulders pattern is completing its formation signaling a possible rise to the $14,000 region before crashing by 80% in the near-long term.

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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