Čvc 31

Analyst: Bitcoin Price Movement Is Slow; Time To Accumulate

Another day rolls by on crypto markets and the momentum is still elusive. Bitcoin and its brethren have crept up marginally in price but most are still range-bound as the consolidation continues. Analysts are in agreement that this is a good time to accumulate.


BTC Price Back Over 200 Hour MA

For the first time in over a week bitcoin price has crossed the 200 moving average on the hourly chart. While the move isn’t overtly bullish on such a short time frame, it is the highest BTC has been since the weekend. During morning trading the king of crypto tapped a four day high of $9,830 according to Tradingview.

bitcoin

BTC price 1-hour chart – Tradingview.com

The move marks a gain of almost 3% on the day as bitcoin also touches the 50 moving average on the four-hour chart. This has served as solid resistance several times over the past week so a break above it could see BTC back in five figures before the week is out.

The daily chart shows a major drop in volatility and continued consolidation on this time frame. Traders and analysts often eye these periods of minimal action to accumulate more before the next big move. Popular analyst, Josh Rager, has been doing exactly that setting targets on bitcoin and a few altcoins.

“With a lack of major volatility, things quiet down. Reminds me when we were under $4k (not near as quiet) but these are the times where I set targets on Bitcoin & maybe a few alts. Months from now people will wish they would have taken more action during the slow price movement,”

The same was said when BTC lulled below $4k for the first three months of this year before finally lifting off in April. Analysts were pretty pessimistic back then with many forecasting further falls back into the $2,000 price range and even below it.

Very few traders and investors, including the professional ones, can successfully catch the bottom every time so the general advice is not to even try. There are clearly a lot of buyers lurking on the sidelines and waiting for a drop to the mid-$8,000 level but that may never materialize.

Bitcoin Bullish This Week?

Tomorrow the FED will cut the interest rate by a quarter percent in the US which is generally a sign of a slowing economy and weakening dollar. This, of course, is good news for bitcoin as asset manager Travis Kling pointed out;

There could be a bigger move ahead for bitcoin price before the week is out but at the moment the consolidation continues.

Will BTC price be back over five figures by the weekend? Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: @Josh_Rager, @Travis_Kling

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Čvc 30

Bitcoin Will Drop To $4000 In ‘Wildcard Move’ Before Rally: Analyst

Popular YouTube securities and crypto analyst, Alessio Rastani has predicted that Bitcoin will drop far below the 21-day EMA before rallying to a new all-time high in 2020.


Bulls could be Walking into a Massive Trap

Alessio Rastani, a popular securities trader and crypto analyst, believes that confirmation bias is misleading crypto-investors to the extent that the majority of traders will in absolute disbelief when Bitcoin drops below $6,000.

The digital asset is slowly creeping toward the 21-EMA near $8,000 which could serve as a strong support or even a bounce point as Bitcoin is likely to be deeply oversold by that point. The current daily chart shows Bitcoin buy and sell volume in a steady decline, even though sell volume has superseded buy volume as of late. 

According to Rastani, the Pulse Momentum indicator corresponds with Bitcoin’s volume decline. Rastani explained that momentum had steadily increased since April when Bitcoin began its monster parabolic rally but since topping out at $13,780, the indicator is has flipped from green to red and momentum is on the decline. 

Rastani is afraid that investor’s confirmation bias is interfering with investors ability to accurately view the current market structure and he cites the numerous articles from analysts suggesting that an impending golden cross of Bitcoin’s exponential moving averages are proof that the rally will restart shortly. 

Rastani explained that: 

The majority of Bitcoin article writers (and video makers) seem to be very bullish.

Lemmings are Running the Bitcoin Price Show

Currently, the general consensus amongst traders is that Bitcoin will correct to the $8,500 – $8,000 zone to enter a lengthy spell of consolidation before commencing a new parabolic rally toward $20,000 to $30,000 as the Bitcoin halving event approaches.

According to this line of thinking, Bitcoin completed wave 1 as it topped out at $13,800 and is currently in wave 2, which bring Bitcoin to the $8,000 support. Wave 3 is supposed to be a lengthier strong upside move that will take Bitcoin to $20,000 to $39,000. Wave 4 brings the oversold digital asset back to $21,000 and wave sees Bitcoin top out at $55,000 in late 2020. 

Rastani advises that investors consider the various contrarian outcomes for Bitcoin’s price action. Rastani posits that Bitcoin’s current correction could in the process of completing a B wave correction.

What Would Happen In A Bearish Scenario

What Would Happen In A Bearish Scenario

The upcoming C wave could see Bitcoin correct as far as $1,800 to $1,600 before reversing course and rallying to $14,000 to $20,000. While this outcome may be unlikely, Rastani is troubled that analysts are ignoring it as a possibility due to overwhelming confirmation bias. 

A Third Situation

Rastani personally thinks that the most probable outcome is that over the coming days or weeks Bitcoin will strongly bounce off the 21 EMA at $7,500 to $8,000 after forming a support near that zone. What comes into question is whether or not the bounce from the $8,000 support will play out as most investors expect.

Bitcoin Price Could Bounce Off Upwards From $7500-8000

Bitcoin Price Could Bounce-Off Upwards From $7500-8000

Rastani warns that close below the 21 EMA would open the doors to bearish price action and he cautions that the bounce from $8,000 might fizzle out around $10,000 to $11,000 instead of the sky-high valuations that many analysts are forecasting. 

The Bitcoin Price Wildcard

Before wrapping up his analysis, Rastani proposed a wildcard scenario which would see Bitcoin bounce strongly off $8,000 to $11,000 – $12,000 before sharply reversing all the way down to $6,500 to $4,500 to complete an ABC corrective move.

Price Could Fall To $4500-6000 In 'Wildcard Scenario'

Price Could Fall To $4500-6000 In ‘Wildcard Scenario’

Rastani predicts that Bitcoin will then reverse trend around $4,000 – $6,500 to commence a major move up toward a new all-time high in mid-2020.  

Regardless of whether one is a Bitcoin bull or bear, it is prudent to consider all possible possibilities when investing. Rastani’s proposals, while extreme, do encourage contrarian thinking which serves to balance investors thought process and combat confirmation bias.

If there’s one thing that is certain, Bitcoin always has a wildcard up its sleeve. 

Do you think Rastani makes an accurate prediction of Bitcoin’s future price action? Share your thoughts in the comments below! 


Image via Shutterstock, YouTube: Alessio Rastani

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Čvc 29

Australia Wants To Limit Cash Payments Not Cryptocurrency

Draft legislation from Australia’s Department of Treasury has proposed limits on cash payments exceeding $10,000. Interestingly, cryptocurrency is not negatively mentioned in the document.


Australia Moves to Limit the Size of Cash Payments

Australia’s Department of Treasury recently published a new set of preliminary guidelines that govern the size of cash-based currency payments. The draft legislation proposes that a “payment limit of $10,000 for payments made or accepted by businesses for goods and services”.

The draft further stipulates that “transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque.” 

In 2018 the Treasury Department’s  Black Economy Taskforce proposed that implementing limits on currency transfers would significantly assist with combating tax evasion and other criminal activities. 

Cryptocurrency Makes the Exceptions List

The proposal also provides a detailed list of situations under which payments are not subject to the cash payment limit:

  • payments related to personal or private transactions (other than transactions involving real property);
  • payments that must be reported by an entity under anti-money laundering and counter-terrorism legislation, provided, broadly, the entity with a reporting obligation complies (or is reasonably believed to have complied) with their obligations under that legislation;
  • payments made or accepted by a public official in which the public official is legally required to make or accept cash payment in the course of their duties;
  • payments that exceed the cash payment limit because the payment is part of a transaction involving collecting, holding or delivering cash and this is undertaken in the course of an enterprise of collecting or delivering cash
    (i.e., providing cash-in-transit services);
  • payments that only exceed the cash payment limit because payment is or includes an amount of digital currency; and
  • payments that occur in situations where no alternative method of payment could reasonably be used.

Interestingly, one will note that cryptocurrency is not listed as a form of payment in need of additional oversight or restrictions. Typically, cryptocurrency is synonymously looped into discussions and legislation focused on illicit activity, money laundering, and terrorist funding.

In this case, cryptocurrency as a payment option falls under the second exception setting “payments that must be reported by an entity under anti-money laundering and counter-terrorism legislation.” As is common knowledge, the majority of major cryptocurrency exchanges have complied with the government’s requirement that exchanges implement adequate know-your-customer (KYC) and anti-money-laundering (AML) processes. 

Australia Believes Crypto Needs Room to Grow

Section 9 of the draft legislation provides greater clarity on digital payments, along with the specifics of their exemption from the cash payment limit. According to a document released by the Department of Treasury: 

Digital currency is a new and developing area in the Australian economy. Unlike physical currency, it does not have a firmly established regulatory framework or industry structure. This makes it difficult to apply the cash payment limit in a way that would not largely prevent the use of digital currency in Australia or significantly stifle innovation in the sector.

At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities. Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit.

This position will remain under ongoing scrutiny to ensure that the exemption for digital currency payments remains appropriate in light of the current use of digital currency in the Australian economy.

The Department of Treasury website clarified that the draft was “released for public consultation” and the government is planning to implement the cash payment limit starting on 1 January 2020. The public is encouraged to submit opinions to the consultation and all inquiries must be submitted by August 12, 2019. 

Do you think limits on the size of cryptocurrency payments should fall under the command of Australia’s Department of Treasury? Share your thoughts in the comments below! 


Image via Shutterstock

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Čvc 28

Bitcoin Looks Bearish as Analysts Eye A Drop to Mid-$8,000

A big move was expected for bitcoin price and it came yesterday with a swift plunge back into four figures. The move resulted in a $15 billion dump from crypto market capitalization as altcoins blindly bled out in the shadow of their big brother.


Bitcoin Does Another ‘Bart’

These ‘Bart-type’ chart patterns have become pretty common over the past week or so as BTC has ranged between mid-$9,000s and low $10,000s. BTC touched $9,300 twice over the past few hours after falling 8% from just over $10k. The move has not been unexpected but has now dropped bitcoin price below the 50 and 200 moving averages on the four-hour chart and below the 50 day, MA as the downtrend strengthens.

bitcoin

BTC price 1-hour chart – Tradingview.com

Trader ‘CryptoFibonacci’ took a look at the day chart pinpointing support levels in the mid-$8,000s range.

“The 10 and 20 ema’s are driving this lower for now. No need to fight them. Broken 78.6 fib retrace as well. Big time support down around 8500-8700 area.”

Fellow trader ‘Bleeding Crypto’ is also eyeing sub $9,000 prices in the next move down for bitcoin.

“$BTC Looking at this, along with some other indicators and I think we have may hit $8800 in the next few days. Not to say that we may have some small pumps but its more likely $8800 will be upon us sooner than later.”

Bitcoin price found a floor around the $9,450 level and has ranged around that for the best part of the past 24 hours, currently trading at 00. A drop to $8,300 would be 40% in terms of correction, which has happened several times in the past so would not be out of the question this time.

BTC Back Up Next Week?

Some are a little more bullish with crypto warlord John McAfee leading the calls for resuming the bull run. He has forecast a big move next weekend but refrained from elaborating on what could be the trigger.

“Bitcoin is under pressure from the U.S. and its price reflects it. But the U.S. has no real power in controlling CryptoCurrency. Just watch. A week from today Bitcoin will continue its meteoric rise.”

One possible catalyst could be the lowering of interest rates by the FED next week. This would be a sign of a slowing US economy and possibly a weaker dollar which is bullish for bitcoin price. Fundstrat’s Tom Lee concurred with his comments yesterday, but he also added that BTC should rise this weekend whereas it has actually done the opposite.

Will bitcoin price bounce back next week? Add your predictions below. 


Images via Shutterstock, Tradingview, Twitter: @CryptoFib, @Bleeding_Crypto, @officialmcafee

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Čvc 27

Bitcoin Boosted By Boris and Brexit

This week saw a new prime minister take over the helm in Britain. Boris Johnson has been handed the unenviable task of guiding the UK through Brexit, coincidentally the economic unrest has caused a spike in the interest for bitcoin according to Google.


Bitcoin Searches Spike Ahead of Brexit

Google searches have risen to their highest levels in England for a year according to reports. The term ‘bitcoin’ has generated more interest on Google Trends recently as Britain barrels towards a long awaited exit from the European Union.

Fresh in the hot seat, Boris Johnson has maintained that he will not play ball with Brussels and a ‘no deal Brexit’ would be the case failing all other options. Politicians in opposing camps and ‘remainers’ have said this would be disastrous for the UK economy, but in reality the years of drawn out infighting and division appears to have done the damage so far.

This scenario has clearly caused concern on an economic level as the GBP has fallen dramatically over the past year. Since the end of February Sterling has lost 7% against the US dollar, falling to a twelve month low of $1.238 this week.

At the moment any hope of brighter days ahead for Britain is on the back burner as the likelihood of exiting the EU in October with no trade deals looms. The European Commission is remaining steadfast with President Jean-Claude Juncker, telling Boris Johnson that it will not give in to his demand to renegotiate the withdrawal agreement.

Fear mongering is at an all-time high but the country will not simply grind to a halt. People will still eat, planes will still fly, and business will carry on regardless. Although bitcoin searches on Google are up globally at the moment, it seems to be garnering more than its usual share of attention in Britain.

BTC a Safe Haven

When concern over economic issues and negative price action in fiat starts to occur, people begin seeking out alternatives as a hedge. Bitcoin, being a global currency, is a good place to start and Britain is not the only country with these trends.

Countries sanctioned by the US are also keen on bitcoin as it can be used to circumvent them. Venezuela is one example as the state is now using BTC to pay aeronautical taxes. Russia, China, and Iran have also expressed more interest in cryptocurrencies as bitcoin slowly becomes the digital safety net for the planet.

Will Brexit be a boon for bitcoin in Britain? Add your thoughts below.


Images via Shutterstock

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Čvc 26

Bitcoin Price Struggling To Stay Above $10,000

Another day has brought another movement in BTC markets and yet again it has been downwards. As bitcoin price battles to stay above $10,000, analysts are looking at new levels of support.


Bitcoin Bart Patterns Back

Yesterday’s bounce from $9,500 topped out at around $10,180, hitting the 200-hour moving average twice. A few hours ago the ‘Bart pattern’ materialized again as BTC plunged back down. Three large red candles resulted in a drop to $9,660 according to Tradingview. Bitcoin price is currently trading just above that at 00

bitcoin

BTC price one hour chart – Tradingview.com

The Bart pattern was not lost on crypto traders on twitter as one pointed out just before the dip.

The previous dip was just above $9,500 so BTC needs to hold above its current level or face further losses which could send it back to $9,200 today. Most are still of the opinion that further losses are likely as the downtrend remains intact. Crypto trader ‘BenjaminBlunts’ mapped out a possible scenario for the next couple of months which shows a dip deep into the $7,000 price range.

“Due to the deep decline off yesterday’s highs this next wave up more likely still a corrective flat and this is the scenario i have in mind for BTC, trading more or less sideways until august, but ultimately break down again. This scenario can still set the stage for alts though”

On the daily chart, the bitcoin price appears to be consolidating still just below the 50 day moving average. A retest of this would take BTC back to $10,200 but a decline eyes the $9,200 level.

Altcoins in Lemming Mode

As usual, the altcoins have blindly followed bitcoin’s lead as most of them are dumping today as well. The $10 billion that flowed into crypto markets yesterday has all been lost today as total capitalization slides back down to $270 billion once again. Daily volume has also now dropped below $50 billion as things cool down in crypto land.

The digital lemmings are mostly in the red this Friday morning. Ethereum has dumped 3% in a fall back to $215, Bitcoin SV is down a similar amount. The only altcoin in the green in the top twenty is Bitcoin Cash but it has only eked out 2% reaching $312.

Nano is today’s big mover and the only altcoin gaining double digits in the top one hundred. There are a few of the lower cap altcoins dumping doubles but there is very little movement for the majority of them at the moment.

Will bitcoin price fall back to $9k this weekend? Add your thoughts below.

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Čvc 25

Bitcoin Price Analysis: Bulls Win Another Breakout

Bitcoin bulls have won yet another descending channel breakout, causing short-term price action to bounce off a key support around $9,500 and push price levels back to 5 digits. 


Bitcoin Monthly Chart
XBT1M

On the monthly XBT/USD, we can see a doji forming on the latest candle as the head sits in the middle of two large wicks. Typically, a Doji can go in any direction and is heavily dependant on the overall trend of the coin. In this case, BTC is still very much bullish so we are assuming an upside continuation will ensue over this time frame. Volume right now are still sustaining levels way above that seen throughout the bull run in 2017 and 2018.

POC (Point of Control) has yet to move up from $6,430 meaning the highest amount of volume or trades exchanged throughout this bullish phase on BTC still remains quite low. This will be a very bullish sign as it shows us high volume is exchanging hands at this level and represents a new critical support level. More information on this key support level can be found in my previous analysis.

Bitcoin Hourly Chart

XBT1H

On the 1 hour XBT/USD chart, we can see the second descending channel break clearly with price action now attempting to create a small bull flag just below the 200EMA. The volume appears to steady with no real jumps during this breakout. This suggests that Bitcoin bears are really struggling to build up momentum inside this time frame.

Maxx Momentum has crossed to the upside painting green in conjunction with this breakout after displaying red throughout the descending channel. POC still remains back at the top of the channel at $10,500 as mentioned in my previous analysis, which will likely as act as a magnet for price action thus making a sensible profit target on this move upwards.

The previous range local high was $9,400 before BTC went on to reach just shy of $14,000 meaning the previous breakout point has already been re-tested for BTC. When a breakout occurs many traders will wait for a pull-back and re-test of the breakout point before entering. BTC has already re-tested the previous breakout point and bounced quite significantly back up to $11,000. From this, we know that support around $9,400 is very strong and will require a lot of selling pressure to break.

Do you think BTC will hit POC at $10,500 over the coming days as a result of this most recent breakout? Please leave your thoughts in the comments below!


Images via Shutterstock, Tradingview

None of the information/ opinions in this article should be construed as financial advice.

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Čvc 24

Bitcoin Price To Hit $42000 In 2019; $356,000 By 2021: Pantera Capital

Bitcoin price action could hit a massive $42,000 figure by the end of this year, the CEO of crypto investment firm and hedge fund Pantera Capital thinks. 


Bitcoin Price Trend Line Can Lead To Huge Gains

Speaking on the latest episode of the Unchained Podcast on July 23, Dan Morehead said that the firm was sticking by its trusted Bitcoin price analysis to determine future performance.

This, he confirmed, includes the possibility of BTC/USD hitting $356,000 in 2021 if its historical compound annual growth rate persists.

At the bottom of the 2018 bear market, when Bitcoin traded at $3100, Pantera considered what growth would be if the price returned to its historical trend line and then kept up that performance in future years.

“That put Bitcoin at $42,000 at the end of 2019, which I know sounds crazy, but essentially we’re halfway back there,” Morehead said.

“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000[.]”

Morehead: Markets Will Accept ‘Crazy’ Price Increases

Bitcoin’s volatile last few weeks has concerned analysts who were already considering where the three-month-long bull market which began in April would end. 

Currently trading under $9800, Bitcoin is now 30% below its recent highs of $13,800, challenging even other, less optimistic, prediction models which put it at $21,000 by the end of the year. 

As Bitcoinist noted, $9800 support is all that stopped markets from falling further this week, as traders nurse 11% monthly losses.

For Morehead, however, the psychology behind bigger numbers for the Bitcoin price has already proven its nature. 

“…($42,000, $122,000 and $356,000) sound crazy, but (in) our first research piece that we wrote on Bitcoin, we predicted it would go to $5000, and when it was at 100 bucks, everyone thought that was totally nuts, but these numbers, in 2 or 3 years, people look back and go, oh yeah, that makes sense,” he continued.

Similar logic could lend weight to some of the boldest Bitcoin price forecasts still on the market, including John McAfee’s infamous $1 million bet with himself. 

Others, such as investor Tim Draper’s $250,000 price tag by 2023, also ensure Morehead is not alone in his bullish outlook.


What do you think about Pantera Capital CEO’s Bitcoin price predictions? Let us know in the comments below!


Image via Shutterstock

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Čvc 23

Palestinian Authority: Cryptocurrency Will Bring Economic Freedom

The Palestinian Authority believes issuing a sovereign cryptocurrency token will reduce Palestine’s reliance on the Israeli shekel.


Palestinian Authority: First Money, then Power

Palestinian Prime Minister Mohammad Shtayyeh recently announced that his government will use cryptocurrency to bypass sanctions levied by Israel. Shtayyeh issued the statement while speaking before the Palestine Center for Computer Emergency Response in Ramallah on July 9. While speaking on Palestine TV, Shtayyeh said: 

The Palestinian economy has about 25 billion shekels [$7 billion] circulating in the local economy, but we’re not forced to remain dependent on the shekel.

Shtayyeh promised to consider every option and do whatever it takes to find a path to economic freedom that Israel cannot block. The 1994 Paris Protocol equips the Palestinian Monetary Authority (PMA) with the powers of a central bank, but the government has been unable to issue banknotes. The agreement was signed by the Palestinian Liberation Organization (PLO) and Israel in 1994 but it states that the shekel will be used “as means of payment for all purposes including official transactions.”

As a result, the Israeli shekel is one of the primary currencies in circulation, along with the Jordanian dinar, and the US dollar. 

Not All Good Ideas Work

In 2017, the PMA pitched the idea of launching a sovereign digital currency and the body hopes to have the digital asset ready within the next five years. In theory, using a sovereign digital asset to bypass sanctions sounds good but not everyone is on board with the idea. 

Najah University economics and social science professor Bakr Shtayyeh doubts that cryptocurrency will be economically feasible or practical for most Palestinians. Shtayyeh also questioned whether a Palestinian cryptocurrency will effectively separate Palestine from relying on Israel. Shtayyeh told Al-Monitor:

If Palestine has its own currency will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports. 

Shtayyeh believes that money is not the problem, rather, the Palestinian economy’s “complex economic and political reliance on Israel” is the true issue. According to Shtayyeh, “there are 170,000 Palestinians working in Israel who earn their salaries in the Israeli shekel [and] 80% of the trade exchanges with Israel are in shekels.” 

Furthermore, what foreign parties or countries would actually take the risk of violating international sanctions to transact with Palestine using its sovereign currency? Shtayyeh explained that in all reality, Israel will shun Palestine’s cryptocurrency and the countries reliance on the shekel will “remain unchanged”. 

Cryptocurrency to Alter the Post World War II International Order?

Security is another issue to consider, and Shtayyeh and Mazen al-Agha, an economics professor at the Palestinian Planning Center cautioned that Israel’s cybersecurity, cyberattack capability, and software development infrastructure is extremely advanced compared to Palestine.

Even if Palestine’s digital currency is developed to completion, there’s always the possibility that it could be compromised by outside cyberattacks. Shtayyeh and al-Agha suggest that a more realistic option would involve Palestine reducing trade exchanges with Israel and building special trade relations with neighboring countries. 

Palestine is not the first country to consider cryptocurrency as a method for overcoming oppressive governments or international sanctions. Currently, Iran, Cuba, Venezuela, and the citizens of Zimbabwe are considering cryptocurrency as a path to economic freedom.

All of the concerns aired by Shtayyeh and al-Agha are valid critiques that must be considered and while they may come off as skeptics, both agree that “in theory, it’s possible to issue this currency, but in practice, there are a lot of difficulties. Before issuing it, the PA needs to create a favorable economic environment.” 

Do you sovereign digital assets are a path to freedom for countries like Palestine, Venezuela, Iran, and Cuba? Share your thoughts in the comments below! 


Image via Shutterstock

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Čvc 22

Bitcoin Price To Move Higher After Neutral Weekly Close

As bitcoin price closes out another weekly candle, traders and analysts are scrambling to predict its next move. The longer BTC consolidates, the larger that move is likely to be, and it could be coming soon.


Bitcoin Price Consolidation Persists …

Yesterday’s retest of $11,000 was very short-lived. Bitcoin price fell back to record an intraday low of $10,330 which was tested a couple of times. BTC recovered to reach $10,600 where it has consolidated for the past 10 hours or so. Daily volume has also dropped back to $16 billion as ranges get tighter.

bitcoin

BTC price 1-hour chart – Tradingview.com

The dojis are coming more frequently which signifies indecision and a battle between bulls and bears with neither getting the upper hand. Trader and analyst Josh Rager also observed a contraction in the Bollinger bands on the four-hour chart which could spell increased volatility when the breakout comes.

“Weekly/daily close was neutral. Closed in the range between primary support/resistance levels. But volatility expected to happen this week, BBands starting to pinch on 4 hour. Hopefully we get some live action on the charts to start the week”

Usually, the longer bitcoin price consolidates for the larger its next move is. Rager is not alone with his prediction of more volatility this week as a fellow analyst, ‘Chonis Trading’, observed a similar thing adding:

“The Longer #bitcoin takes to consolidate the Bigger the next move becomes … $BTC is the same price it was exactly a month ago… the next break should happen quicker and larger than the last…”

Still on crypto twitter is ‘Dave the wave’ who has been eyeing the fractals and noting that something big is about to happen for BTC.

Industry observers are generally mixed with their predictions of the next direction. Many are predicting further declines following the retest of $11,000 and failure to break above it. This would lead to buying opportunities back in four figures. Bitcoin price has not spent a great deal of time below $10k over the past month which indicates there are a lot of buyers lurking there.

Conversely, the pressure from US lawmakers appears to have eased somewhat with the bulk of their anxiety being targeted at Libra and big tech becoming their own banks.

Elsewhere in crypto land things are pretty quiet today. Altcoins are largely unmoved from weekend prices and they are likely to stay that way until we get a big bitcoin breakout. Total crypto market capitalization is currently at $290 billion which is where it was this time last Monday.

Will bitcoin price break up or down in its next big move? Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: @Josh_Rager, @davthewave

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