Bitcoin Price Drops: Where do We Go From Here?

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A bit of a fall has occurred on bitcoin’s side. Since our last price piece, the bitcoin price has stumbled by about $12 and now hovers at $628.

Also read: Bitcoin Price Breaks $640, Are We About to Go Even Higher?

Bitcoin Price Heading South?

One source writes:

“The levels in focus moving forward are in terms support to the downside at 629, and in-term resistance to the upside at 632. Just as with this morning, this width of range is far too tight to go at with an intra-range approach, so it’s all about breakout for now. If price closes above in terms of resistance, we will get in long towards an immediate upside target of 637. A stop on the trade at 630 defines risk. Conversely, if price breaks below support, a close below this level will put us short towards 625.”

It appears most analysts are not fully able to predict where bitcoin will travel from here. The market is showing mixed activity, and there’s nothing specific to give us a better understanding as to whether things will become bullish or bearish. Present sentiment seems to suggest a bull run, but caution remains that a bearish market could emerge from the darkness.

One analyst explains that bitcoin is presently stuck in an “arc,” and whether it will move north or south is relatively left open to chance:

“Price is meandering its way through the third arc pair. Longer term, this is bullish because when it gets out of the arc pair it is likely to rise again, but until it gets to the other side with a strong close above the arc, it’s not so clear what will happen while it’s in the pair itself. Tomorrow is 120 degrees since the spike low of 6/22, so we are at a point in time that we can expect something might begin tomorrow. But what? A reversal or acceleration?”

This same source suggests that if bitcoin closes below $638 in the next day, a bearish market wouldn’t be terribly unlikely. Still, however, one can see that there is no clear evidence to suggest where bitcoin will go or when, and if support breaks, a massive drop may occur.

Investors are warned to lay off major trading until the market “makes a decision,” and clear signs about where things will go are offered.

Do you think bitcoin’s price will rise or sink? Post your comments below!

Image courtesy of Bitcoinist.

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