Sellers are looking for 7120$ support zone

Sellers are looking for 7120$ support zone

This week has not been a good week for Bitcoin (BTC) as the price dropped to $7870 again yesterday after reaching $8540 on October 1st. This downtrend was predicted in last week’s analysis. At the same time, the gestures towards China’s Golden Week are projected as a potential catalyst to reduce trading volume. Now we have to wait to see if the Chinese are going to buy or are sitting on the sidelines to show new support price signs on the charts.

Using one-day bitcoin charts, last week’s trading range between support and dynamic resistance on the Bollinger Bond Index is expected to be between $7600 and $9500. However, there were very few trading opportunities as bitcoin’s price fluctuated in the middle of the two, at about $8200. When bitcoin fluctuates in this specific range, it means that there is a balance between buyers and sellers. This actually means that the price goes through the merger process before the trend continues or reverses.

What does Bitcoin’s price look like before the next huffing?

There has been no week without the bizarre claims that bitcoin will rise to its epic peak in the future, and last week was no exception. As reported by Cointelegraph, the German bank Bayerische Landesbank released a report that it is expected that bitcoin will likely be priced at $90.000 on the May of 2020, at the time of the halving. However, the assessment was echoed by Tom Lee predicted  on March 7. He also estimates it to be roughly the same, and predicts the price of $91.000 on a similar time scale.

Many traders like to know how these analysts come to these figures, because talking about charts in the short term really doesn’t give any information. The fact is that despite these ambitious assessments, the near future looks to be a bit declining. Major indices such as Moving Average Convergence Divergence (MACD) and Bollinger Bond (BB) warn that the short term bitcoin price trend will be bearish.

Bullish scenario

If bitcoin crosses the $7120 support line upwards and stands above $8890, buyers are hopeful. An upward trend above $9880 gives the buyer temporary control. If something unexpected happens, and bitcoin jumps to $10672, the last possible stop before the projected climbs of 2020 is $12000.

Bearish scenario

If Bitcoin falls below the $7000 level or even the $7120 level, it will be in critical condition. This price level represents a milestone for Bitcoin and saw the lowest annual sales volume with a 80% correction of the year, which appears to be dropping to the $2500 range.

Keep in mind that the opinions expressed are only a reflection of world news and the views of the author. Every investment move and transaction is risky and you need to do some research to buy or sell bitcoin.

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