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Bitcoin Is On the Verge of Falling Towards $8,500, Then $7,000: Analyst

Nick Chong

Nick Chong | Jul 23, 2020 | 12:07

bitcoin price Bitcoin Price

Bitcoin Is On the Verge of Falling Towards $8,500, Then $7,000: Analyst

Nick Chong

Nick Chong | Jul 23, 2020 | 12:07


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  • Bitcoin is finally showing strength as the stock market and precious metals have surged higher. As of the time of this article’s writing, BTC changes hands for $9,500.
  • BTC closed Wednesday’s trading session above a crucial level.
  • The asset may not be in the clear yet as an analyst suggests a move below $9,300 could spell disaster for bulls.

For Bitcoin to maintain its current bullish trend, it must not lose the $9,300 price point in the near future. That’s according to a cryptocurrency trader who has accurately called some moves over the past few months.

Bitcoin Must Hold $9,300 to Maintain Bullish Trend

On Wednesday and early during Thursday’s trading session, Bitcoin finally broke higher from its consolidation. It was not the explosive move that many expected, but it was something.

Bitcoin trades at $9,500 as of this article’s writing after it jumped from the $9,350 range to a local high of $9,570. The move did not seriously influence volatility indicators, which remain at multi-year lows.

This move has been welcomed, but not everyone believes Bitcoin is in the clear.

Prior to the move, a trader argued that BTC moving below $9,300 in the near future will make him bearish:

“Close above that red line today ($9300) and I might reconsider my short term bearish bias (mid-term bear bias remains). Close below and I’ll consider shorting more aggressively targeting the green line ($8500) first and green area second (~$7000).”

Image

Chart of Bitcoin’s recent price action with analysis by “DonAlt” (@CryptoDonAlt on Twitter). Chart from TradingVIew.com

As aforementioned, Bitcoin has decisively moved above $9,300, the level mentioned in the above analysis. The analyst has not yet made it clear if his stance has changed after the recent move.

Bulls in Control

Bulls seem to be in control of Bitcoin after that latest move due to fundamentals and on-chain trends.

Ki Young Ju, the CEO of Crypto Quant, shared three explicit on-chain trends indicating Bitcoin is a “BUY.” As reported by Bitcoinist, these trends are as follows:

  • Bitcoin miners are “HODLing” coins, with addresses tied to these entities seemingly stashing many of their coins.
  • Per Crypto Quant data, there have not been “no significant exchange inflows from whales so far.”
  • “All exchanges’ reserve hit the year-low a month ago and [have kept] that low.” This trend indicates that investors in cryptocurrency are accumulating rather than selling their coins. This has been corroborated by Glassnode.

Further boosting the Bitcoin bull case, moves have been made to implement more stimulus in the U.S. Secretary Treasury Steven Mnuchin said in a recent comment that this next bill will start at $1 trillion worth of stimulus.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Is On the Verge of Falling Towards $8,500, Then $7,000: Analyst

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