Some time ago, I put forward an argument about Bitcoin hitting the $6500 mark. I wrote about it in a blog titled "Bitcoin: Brace for Another Price Fall" on the 18th of September. I have brought this up because of what I wrote on that day. The graph below will illustrate this point perfectly. As is seen, the $9532 price level is supported. That support was tested four times before the eventual price fall. A support or resistance level tested three or four times almost always signals a fall or rise in price.
In this case, might we assume the same is about to happen once more? I ask you once more to observe the graph below:
Bitcoin price is in consolidation with the $6616 level tested twice already. Let us not forget that volatility is quite mild considering as you can see on with the Bollinger Bands. The price trend is also weakly-bullish as the price is beneath the Cloud and the Chikou Span entangled with the price. This entanglement means that the price levels are acting as a resistance to the overall trend. Besides, the Chikou Span is considered bearish as it is below the price of 26 days ago.
The reasons above indicate that the $6616 price will be tested again. If a test occurs for the third and fourth time, we may see a drop in price to levels such as $5500. As to what price we should expect, your guess is as good as mine.
A short while ago I dropped a line about seeing how the price of Bitcoin moved closer to the 200-weekly moving average (WMA) as being an indicator of what might happen to its’ (Bitcoin) price. The significant detail to notice here is whether the Bitcoin price crosses the 200 WMA and if or when it does what to anticipate. Looking closely at the Bitcoin weekly chart, we can determine that on several occasions the price had touched the 200 WMA. As of this day, the 200 WMA is at $3276. 8. The price of Bitcoin at the time of writing was $3707. Although the price of Bitcoin has not fallen to the 200 WMA price, it is quite close considering the cryptocurrency’s volatility. With a difference of just under $500, we all hold our collective breaths to see if this happens.
Chart courtesy of investing.com
We must all recall one thing, statistically, if the price goes down and closes below the 200 WMA, then the odds of a downturn increase substantially. As is known, this is not strictly true when taking the markets (any market) into consideration. The cause is simple, markets (any market) do what they want, regardless of what we desire. Even if the price of Bitcoin hits the 200 WMA line, it may bounce off to a higher price, and maybe even be the start of a new bull market. All we can do is to wait and see, but then again, your guess is as good as mine.
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