Here’s Why Bitcoin Price Could Drop Below $4,800 in Coming Weeks

Here’s Why Bitcoin Price Could Drop Below $4,800 in Coming Weeks

9:20am, 10th May, 2019
The continued its rally higher this Friday as traders kept their upside targets glued towards the 2018’s most traded price of $6,400. The BTC/USD pair hit $6,337 on the US-based cryptocurrency exchange Coinbase to bring its net bullish rebound up 102 percent. The pair, according to market analyst Josh Rager, was now testing $6,427 as its near-term resistance while $6,345 was providing crucial support to bitcoin’s next potential upside action. Rager also highlighted that bitcoin’s weekly RSI had crossed above 70 – an overbought territory – for the first time since January 1, 2018. The analyst said that the cryptocurrency needed a pullback, which would neutralize its market sentiment. – Above $6300 Daily resistance flipped to support for now at $6153 (red arrow) Next resistance to look for is the $6345 and close above $6427 is bullish Weekly RSI hasn't hit above 70 since Jan 1st 2018 and it's quickly approaching Needs pullback But BTC has been on — Josh Rager (@Josh_Rager) The RSI Pullback History While the bitcoin price is not far away from achieving the $6,400ish target, its potential of extending its bullish momentum looks weak, at least in medium-term. Bitcoin Price Dropped Dramatically to Neutralize its Weekly Overbought Conditions | Image Credits: TradingView.com The cryptocurrency’s history shows extreme pullbacks whenever its momentum indicator, the RSI, charted into overbought territories (above 70) in a weekly chart. In Case 1, one can see the bitcoin price correcting downwards by up to 39.2-percent, two weeks after its RSI went above 70. Similarly, in Case 2, the bitcoin price goes through a similar downside correction just a week after its RSI peaks towards 115. Case 3 tells the same story: the bitcoin price establishes its historical high towards approximately $20,000 as its RSI ventures deeply into its overbought territory. A week later, the price drops by as much as 43.22 percent, taking the RSI down alongside. These cases offer plenty of evidence about traders’ behavior whenever the weekly RSI pops above 70. They can be applied to the current scenario, considering a pullback sentiment above $6,400 is also high. The dual technical factors could prompt bitcoin to begin at least a 24.95 percent correction to the downside, which will bring the price to a $4,804 – more or less. Bitcoin Not Bearish A Pullback is Good for the Bitcoin Market | Image Credits: TradingView.com A sharp pullback will not accurately pull bitcoin out of its strong bullish bias, primarily due to strong fundamentals appearing in the market. , a Wall Street-friendly asset management firm, has announced it would start purchasing and selling bitcoins on behalf of its institutional clients. Billionaire president and chief executive officer, Abigail Johnson, will also be speaking at the upcoming Blockchain Week NYC. Any further updates from her regarding Fidelity’s bitcoin trading plan will play a key role in boosting the cryptocurrency’s spot market sentiment. Coupled with technical factors, such as the new , the bitcoin market looks exceptionally bullish. Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision. The post appeared first on .
Analyst: Bitcoin (BTC) Reaching 5,500 is a Strong Likelihood, But Possibility of Drop to 3,000 Remains

Analyst: Bitcoin (BTC) Reaching 5,500 is a Strong Likelihood, But Possibility of Drop to 3,000 Remains

3:34pm, 24th March, 2019
Bitcoin has been experiencing a quiet weekend trading session and is currently firmly in the middle of its long-established trading range between $4,000 and $4,100. It is unclear how long this range will persist, but historically BTC has experienced fairly significant price swings after long bouts of sideways trading. Now, analysts seem to concur that Bitcoin is posed to make a large upwards swing towards $5,500 in the near future, but it is important to note that the possibility of further downside still remains. Bitcoin (BTC) Caught in Persisting Trading Range At the time of writing, is trading down marginally at its current price of $4,020. Over the past several days, BTC’s volatility has been declining as its trading range grows tighter. Although the upper bound of BTC’s current will most certainly act as a level of resistance in the near-future, the key level that analysts and traders alike are closely watching to see how Bitcoin responds to is $4,200, which is where the crypto faced strong resistance and spiraled downwards from late last month. Crypto Krillin, a cryptocurrency analyst on Twitter, recent discussed where he sees Bitcoin heading next, importantly noting that he believes the crypto will make an upwards swing towards $5,500 next, but further added that a downside target of $3,000 is still a possibility. “The moment of truth for Bitcoin is very near. We fly straight through the cloud to 5500, or we visit 3000. I’m leaning bullish,” he explained in a recent tweet. "Confluence" The moment of truth for Bitcoin is very near. We fly straight through the cloud to 5500, or we visit 3000. I'm leaning bullish. — Crypto Krillin ॐ (@LSDinmycoffee) $5,500 Becoming an Important Level For Bitcoin Crypto Krillin is not alone in his belief that Bitcoin’s upside target currently exists around $5,500. Yesterday, Galaxy, another popular cryptocurrency analyst on Twitter, to his nearly 50k followers that BTC is currently nearing the end of an ascending triangle formation, which means that the crypto is, statistically speaking, likely to make a large upwards price swing towards $5,500 in the next month or two. “According to Bulkowski’s study, more than 60% of ascending triangles with declining volume end up breaking upwards… with an average price rise of 35%. That gives us a target of $5500 BTC once the breakout is confirmed,” he noted. According to Bulkowski's study, more than 60% of ascending triangles with declining volume end up breaking upwards with an average price rise of 35% That gives us a target of $5500 BTC once the breakout is confirmed. — Galaxy (@galaxyBTC) As the new week starts and trading volume begins to ramp up, the will gain greater insight into just how strong Bitcoin’s current trading range is, and as to where it will head next. Featured image from Shutterstock. The post appeared first on .