Bitcoin really didn’t work well in the past day. After the impression of a false candle on Saturday that brought the asset price to $ 9,200, there was a rapid and violent reversal. What followed was a dramatic and abrupt downward trend that pushed the price of BTC down to $ 8,300 last hour (at the time of writing), marking a 10% drop from the highs. .
Here’s what analysts expect from Bitcoin.
Bitcoin bullish case
Although the price action that has taken place in the past 24 hours has been sharply bearish for Bitcoin, some expect the asset to rebound.
NebraskanGooner, an founder of Exchange Level and a well-known crypto trader, noticed that “as scary as the drop is,” Bitcoin fell on its daily trendline support, shown below. The trend line has acted as both resistance and support for at least two months now, suggesting that this is a crucial level to watch.
As scary as this drop is, we fell on my daily trend line support.
If so, we may be able to retest the $ 9,500 zone.
I don’t know how likely it seems at the moment, but it is a valid possibility at the moment.
Need to see how it ends today. https://t.co/VTDbrognWB pic.twitter.com/nheQvcb3of
– NebraskanGooner? (@nebraskangooner) March 8, 2020
With BTC currently holding the trend line indicated by NebraskanGooner, he suggested that there was a chance it could go up by around 15% to $ 9,500, the top of the range he defined in the graph below. -above.
NebraskanGooner is not the only bull in this environment.
The prominent Big Cheds trader recently wrote that Bitcoin had “its permission” to “bounce back now”. Supporting this noble feeling, it pointed to a graph this showed that Bitcoin has found support at $ 8,400 more than three times in the past few weeks.
The bearish case
Despite this bullish feeling, the ball is apparently in the court of the bears, so to speak. (For example, the price of Bitcoin fell to $ 8,200 in the minutes I wrote this article.)
The founder of the cryptocurrency consulting firm Burger noted that Bitcoin could print a bearish pattern of head and shoulders, which could mark a medium-term reversal in the price of BTC:
H&S model on the daily chart for $ BTC which often marks the start of a reversal.
Combination of #Crowned FUD and TA make this a plausible scenario; H&S model on the daily chart for $ BTC which often marks the start of a reversal.
You don’t know how all Corona FUDs will affect the BTC price. This should not affect him too much with a theoretical POV, but with emotions. pic.twitter.com/QWkYW7yWHM
– ₿urger (@BurgerCryptoAM) March 8, 2020
He added that with the existence of the “FUD” coronavirus, there could be negative effects on the cryptocurrency market – as can already be seen with traditional markets.
Photo by Joshua Karthik on Unsplash