Bitcoin Price Likely to Hit $7,500 Before Rally to New Highs


Over the past 24 hours, Bitcoin and the broader cryptocurrency market have been crushed by bears. According to Coin360, the BTC price is trading at $8,500, 12% lower than the day prior.

While the selling pressure has just begun, leaving much left uncertain in the charts, analysts are convinced that Bitcoin will only see more pain in the coming days. You see, BTC is now sitting under an array of prominent technical supports — the descending triangle bottom, 21-week moving average, and $9,000 horizontal just to name a few.

Related Reading: Crypto Twitter Divided Over Bakkt; 50% Expect the Bitcoin Futures to “Flop”

But, one fractal from an analyst on TradingView is showing that this flash crash won’t cause lasting effects on Bitcoin’s market structure. In fact, it predicts that the cryptocurrency market may soon resume its long-term march to new all-time highs.

Bitcoin Price May Soon Recover

Tuesday was an absolutely jaw-dropping day for the cryptocurrency market. Over $550 million worth of Bitcoin long positions were liquidated on BitMEX as the cryptocurrency market cratered in the first volatile trading session in weeks.

According to a fractal analysis — a way of using previous bouts of price action to try and forecast Bitcoin’s future movements — published by CryptoBullet on September 20th, this volatility will continue. But, they suggest that this volatility may be in favor of bulls.

Related Reading: Bitcoin Need Accentuated as Negative-Yielding Debt Hits $17 Trillion

CryptoBullet noted that in 2017, Bitcoin, during the early stages of the previous bull run, found itself in a descending triangle that eventually broke down in a spectacular fashion. What’s crazy is that BTC started rallying as fast it plummeted just a few days later, eventually entering back into the triangle, then surging to new all-time highs.

What we saw over recent months and on Tuesday seems to be an eerie reenactment of this chart formation from mid-2017, but with Bitcoin at a different price and the with fundamental backdrop being arguably even more bullish.

The fractal, should it play it out in full, implies that by the end of this year, the Bitcoin price should be back on its way to fresh all-time highs.

Another analyst has corroborated this fractal and sentiment. Paris-based cryptocurrency trader Marvin Chebbi issued his own message on the fractal, seemingly agreeing with the idea proposed by CryptoBullet. In it, Chebbi referencing the same market event, which saw BTC lose the support of a descending triangle in 2017 to only break to fresh all-time highs just weeks later.

Chebbi, referencing the fractal, wrote:

“A break down of the descending triangle doesn’t necessarily mean the end of the bull market. We had a similar price action in June ’17 with some sort of descending triangle formation (lower highs+equal lows) that broke down, found support a bit lower, [then recovered.]”

Not in Clear Waters Just Yet

While this fractal likely has bulls over the moon, so to speak, Bitcoin’s chart is far from bullish. Prominent analyst Josh Rager suggested in a tweet of his own that Bitcoin could easily “head down to the low $7ks” should it fail to break above the current resistance of $8,800.

The technicals back further losses. While the one-day Relative Strength Index (RSI) is flashing “oversold”, the one-day MACD still has copious room on the downside to head lower.

Featured Image from Shutterstock

Source link


Please enter your comment!
Please enter your name here