An analyst says it is possible to avoid a large drop in Bitcoin’s price by Q3 2020

 

The price of Bitcoin (BTC) fell below $9,000 a total of eight times in the last two months. However, it has recovered after each fall.

According to Coinmarketcap, Bitcoin’s market capitalization is currently USD 166,606,925,762.

Be sure to read: Bitcoin Forecast: What will be the price of bitcoin in 2020 according to the experts?

According to a crypto analyst with a pseudonym, the price of Bitcoin could maintain its upward trend if it recovers the 200-day moving average (MAD). The analyst, known as CryptoKea, said

„The Bitcoin price broke through the lower band of the bullish channel a few days ago. Is the bullish trend in danger? In my humble opinion, as long as the Bitcoin price soon recovers above 1.1 times the DMA-200 (currently at $9.234 and rising), the uptrend should remain intact.

WAD is a moving average that is often used in technical analysis to detect trend direction and potential reversals.

According to economist Nicolas Litvinoff, the price of bitcoin has a long-term upward trend

 

Why the $9,200 support level is key for Bitcoin in the short term
Since May 13, the $9,200 level has acted as a support area for the Bitcoin price. Although BTC fell to $8,600 at the end of May, it quickly recovered to $9,200.

In the short term, there are two levels that could define the future trend of Bitcoin: $9,000 and $9,200. If both levels remain intact, there is a possibility that the Bitcoin price will recover and present a new upward trend.

CryptoResources Analysis: What is currently happening with the bitcoin price?

But if the resistance levels of $9,000 and $9,200 are confirmed, traders anticipate a correction in the third quarter.

The bitcoin price may fall below the support levels and still regain its momentum if it recovers quickly. For example, in the first week of May, the price of Bitcoin was around $9,000. The trade was above the 200-day DMA, above $8,800.

Finally, when the price of Bitcoin remained above the DMA, it rose to $10,440. BTC rejected at a key multi-year resistance level, but saw a large short term rally.

The analyst said at the time:

„BTC is holding steady above 1.1 times the DMA-200, which is the support line in the bullish channel (yellow). If the price is ready for a sustained upward trend and history repeats itself, the price could remain in this channel for more than a year, current range: USD 8,800-USD 13,600“.

Similarly, there are two potential scenarios for the Bitcoin price in the coming weeks. First, Bitcoin returns to USD 9,234 and starts an upward movement to USD 9,500 and USD 9,900. Second, Bitcoin clearly rejects the $9,200 and $9,000, confirming both as resistance levels while falling to the $8,000.

Related Post