Technical analysts predict that Bitcoin (BTC) has not yet bottomed out and will continue to be traded in the bear market. The Bitcoin price is currently testing the $ 6,100 level and is in another downtrend, after a brief surge to nearly $ 6,600 yesterday.
Robert Sluymer of Fundstrat, a technical analysis firm, has stated that he expects “further testing of the next level of support”.
As the chart shows, the Bitcoin price has already dropped well below the 50-day moving average, which usually indicates a bearish run. The Relative Strength Index (RSI) is just over 30. If the RSI is below 30 percent, the market may be considered oversold, with some analysts adjusting that to 20 percent in a bear market.
Sluymer said yesterday, “You ‘re getting a bounce today, but I expect the next level of support to be close to $ 6,100. It’s pretty early to predict. The market must first stabilize. “
A Bloomberg Intelligence analyst, Mike McGlone, said the price of Bitcoin will continue to fall. He explained that this correction was more “tame” compared to the previous ones. He said, “Bitcoin is in dump mode after the pump has encountered the potential of a US ETF. This may not diminish until the good support of nearly $ 4,000 is returned – close to last year. “
Renaissance Macro Research technical director Jeff deGraaf said he would recommend betting against Bitcoin if Bitcoin breaks the YTD (year-to-date) support level. He says, “Parabolic moves are notoriously dangerous to short sellers. Usually, a top that often appears as a descending triangle for months, develops with reduced volatility and little [fanfare]. Once the top reaches the level of support, the security in question can often be seen as permanently compromised or even regarded as ‘game over’.
DeGraaf has become one of Wall Street’s most respected charting technicians for the last two decades. He has been elected as a senior technical analyst for more than 10 years by Institutional Investor Magazine over the course of his career. In 2014 he became a member of the Research Hall of Fame of Institutional Investor. Nevertheless, the question arises as to whether such an end-time prediction should be taken seriously. The cryptocurrency market has its own laws and cannot be compared with the traditional financial market.
In addition, Bitcoin has had a tough third quarter so far. In early July, Bitcoin traded at the $ 6,200 to $ 6,400 mark and rallied to over $ 8,200 in anticipation of a Bitcoin ETF grant. On July 24, Bitcoin had surpassed the $ 8,000 mark but had the first decline thereafter. This occurrence was very strongly correlated with the rejection of the Winklevoss Bitcoin ETF.
Despite the poor press around the ETF, the price quickly recovered to $ 8,200. The $ 7,000 decline began on July 31, with the stock price plummeting from $ 8,100 to $ 7,600 until August 1. Until August 4, another decline to 7,000 was noticed. On August 8, the $ 7,000 mark was breached, causing the BTC price to fall to $ 6,300 after it was announced that the SEC had postponed the application for the Bitcoin ETF from the CBOE and VanEck until the end of September.
Time will tell, how things are going to shape up in the cryptocurrency market.