Analysts Explain Why Bitcoin Price Risks Falling Below $10K – Bitcoinist.com


  • Bitcoin jumped above the $10,000-level on Sunday for the first time in almost two months.
  • The rally appeared as falling yields on US bonds lifted demand for safe-haven assets.
  • Nevertheless, some analysts, including gold bull Peter Schiff, expect Bitcoin to correct below $10,000 in the coming sessions.

Bitcoin broke above $10,000 on Sunday after consolidating inside a sideways range for almost two months.

The benchmark cryptocurrency rallied 8.19 percent in a three-day winning streak, hitting $10,333 as of Monday. Market analysts, including veteran trader Jonny Moe, noted that BTC/USD could extend its move towards or beyond $10,500, a level it previously tested for a breakout in June and February but failed at achieving it.

Fundamentals

But catalysts are different this time. Bitcoin’s latest rally appeared as the US dollar plunged to its two-year low against a basket of national currencies. In turn, the greenback fell under the influence of plunging Treasury yields as the Federal Reserve maintained its benchmark lending rate near zero.

How To Get Free Crypto  

Gold, a rival haven asset, jumped towards its all-time high on similar hedging sentiments. Mr. Moe pitted the precious metal’s record rally against Bitcoin’s breakout move, calling it a sign of the cryptocurrency’s extended bullish momentum.

But even a flurry of positive fundamentals failed to convince some analysts about an extended price rally. They include hardcore gold bull Peter Schiff and crypto-focused investment portal Phi Deltalytics.

Bad History

Peter Schiff, the CEO/c0-founder of Euro Pacific Capital, expects Bitcoin to drop wildly in the coming session. He explained that the cryptocurrency failed to extend or hold its bullish bias above $10,000 across the last 12 months.

In October 2019, for instance, the BTC/USD plunged 38 percent right after breaking $10K. The same happened in February 2020 and May 2020 as the pair corrected by 63 percent and 15 percent upon hitting the six-figure region.

Coinbase Banner  

“It’s above $10,000 again today. How big will the next drop be,” questioned Mr. Schiff.

Bitcoin faces extreme selling pressure near the black horizontal line. Source: TradingView.com

The gold bull’s comments highlighted a lower buying demand for Bitcoin above $10,000, as Bitcoinist discussed in one of its earlier articles. Traders typically liquidate their bullish positions near the said level to secure short-term profits, a sentiment that keeps the potential buyers away.

CME Bitcoin Futures Gap

What Mr. Schiff predicted for Bitcoin may come true owing to an almost-accurate technical indicator. On its way up during the weekend trading session, the Bitcoin market left a massive gap in its daily Chicago Mercantile Exchange’s futures chart.

Bitcoin Futures gap at $9,665-9,225. Source: TradingView.com

Historically, traders tend to fill the CME Bitcoin Futures gaps. The chart above illustrates many examples wherein the price has reversed from its uptrend/downtrend to fill the missing candles formed during weekend sessions.

Strategists at Phi Deltalytics agreed with the possibility of Bitcoin breaking below $10,000 to fill the said futures gap at $9,665-9,225. It also added that institutional activity on CME is also not showing indecisiveness about a clear trend ahead.

FreeBitcoin Banner  

“There are no clear signs of bullishness for the coming months,” noted the strategists.

Bitcoin was trading 1.10 percent lower from its intraday high at $10,333 as of 0753 UTC.

Go to Source
Author: Yashu Gola


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.