HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Analyst: Bitcoin to See One Final Downtrend Before Bull Run Begins

Bitcoin 2020/07/18 22:00 by Cole Petersen

Bitcoin’s intense consolidation phase may soon draw to a close, as multiple technical patterns are now suggesting that some massive volatility is imminent.

This potential trend-defining movement comes after months of range-bound trading between $9,000 and $10,000.

Throughout the past few weeks, this trading range has narrowed to between $9,000 and $9,300, with both buyers and sellers sitting deadlocked as both sides fail to gain control.

One analyst is now noting that he is expecting Bitcoin to see one more accumulation cycle that sends its price reeling down towards the sub-$5,000 region.

This price target aligns with the lower boundary of a massive pennant that has been formed throughout the past three years.

He believes that this decline will mark the final re-accumulation phase seen by the benchmark cryptocurrency, and this could be followed by an intense uptrend that allows it to enter firm bull territory.

Bitcoin’s Bollinger Bands Suggest Massive Volatility is Imminent

At the time of writing, Bitcoin is trading up marginally at its current price of $9,170.

The cryptocurrency has failed to garner any decisive momentum throughout the past several days and weeks as its trading range continues narrowing.

This consolidation phase has been driven mainly by a sharp decline in both liquidity and trading volume seen by the digital asset throughout the past several weeks and months.

This narrowing trading range may also be the result of traders growing increasingly focused on altcoins, which have been seeing intense uptrends throughout the past few weeks.

Until the strength seen by many of these smaller tokens starts faltering, it is possible that Bitcoin will remain caught in its current bout of sideways trading.

One analyst recently observed, however, that Bitcoin’s Bollinger Bands are now at their tightest levels seen since October of 2018. This means that the cryptocurrency is likely to make a massive movement in the days and weeks ahead.

“Bitcoin – Daily BBs have not been this tight since October of 2018 – I hope you have your popcorn ready.”

Bitcoin

Image Courtesy of Big Cheds. Chart via TradingView.

Analyst: BTC Likely to See One Final Decline Before Bull Trend Kicks Off

While speaking about Bitcoin’s path forward, one highly respected analyst explained that he is expecting it to see one final re-accumulation phase that sends it down to the lower boundary of its macro pennant.

This could mean a movement towards $5,000 is imminent, and that it will be followed by the next bull market.

“BTC macro re-accumulation. One last set of cycle lows then mark-up,” he concisely said while pointing to the below chart.

Image Courtesy of TraderXO. Chart via TradingView.

Because of Bitcoin’s historically tight Bollinger Bands, this next cycle-low may kick off in the coming days and weeks.

Featured image from Unsplash.

Charts and pricing data via TradingView.

0 Like(s)



You should also read...

Bitcoin 12/06/20 18:00 by Cole Petersen
Bitcoin Just Broke Its Parabolic Uptrend; Here’s What Traders are Saying
Bitcoin’s recent volatility has done some damage to its underlying market structure, despite it being able to post an ardent defense of the lower boundary of its long-established trading range. Yest...
Read More
Bitcoin 28/06/20 00:00 by Nick Chong
It May Take Bitcoin Until Q4 2020 to Break Into a Bull Market: Analyst
There have been many optimistic Bitcoin traders that have been expecting an imminent break into a bull market. Yet an analyst has said that it may be until the end of 2020 that the cryptocurrency mark...
Read More
Bitcoin 13/07/20 18:00 by Cole Petersen
This Overhead Liquidity Region Could Propel Bitcoin Past $12,000
Bitcoin’s unrelenting consolidation phase may not last for too much longer. Analysts are now explaining that the cryptocurrency is beginning to flash some subtle signs of bullishness as it trades ar...
Read More
Bitcoin 27/07/20 00:00 by Cole Petersen
Here’s What Analysts are Saying About Bitcoin as Critical Weekly Close Nears
The crypto market’s ongoing uptrend first started a few weeks ago when altcoins began posting major gains. Their strength came about against a backdrop of stability seen by both Bitcoin and Ethereum...
Read More
Altcoins 22/08/20 21:00 by Nick Chong
Analyst on Why Ethereum’s Bullish Market Structure Is Intact After Strong Drop
Like most other crypto assets, Ethereum has slipped lower over the past four days. After peaking on Monday, all cryptocurrencies have retraced as Bitcoin has fallen lower seemingly due to a rise in th...
Read More