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Bitcoin’s Bull Case Degrades Following Selloff; What Analysts Are Watching

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  • Bitcoin is flashing signs of weakness following the intense selloff it saw yesterday
  • Sellers ultimately forced its price as low as $11,100 before it found significant support that allowed it to rebound up towards $11,400
  • This momentum proved to be fleeting, however, as BTC’s price quickly retraced back down towards $11,300 following this movement
  • It now appears to be at risk of seeing significantly further near-term downside
  • Some analysts are even targeting movements down towards $10,000 in the days ahead

Bitcoin is currently facing some intense selling pressure that is putting its position within the lower-$11,000 region at risk.

This came about following a period of relative stability seen yesterday after the crypto’s price was able to bounce at lows of $11,100.

It does appear that BTC may soon revisit these lows, as sellers are currently attempting to take control of the crypto as the selling pressure begins ramping up.

$11,300 has become slight support for the benchmark digital asset, as buyers have been ardently guarding against a break below this crucial price level.

Nonetheless, one top trader is now setting his sights on a plunge towards $10,000 in the coming days, which would mark a notable decline from the crypto’s recent highs of $12,400.

Bitcoin Shows Signs of Weakness as Selling Pressure Ramps Up 

At the time of writing, Bitcoin is trading down marginally at its current price of $11,300. This is around the price at which it has been consolidating at following the decline to $11,100 seen yesterday.

After tapping these lows, the crypto was eventually able to surge as high as $11,400, but it faced a rejection here that subsequently led it down to its current price level.

One trader is noting that BTC is currently trading around a price region he is comfortable longing, although a break below here could be dire.

“Don’t know how [much] BTC has in the tank today. Looking to operate within the LTF levels but seeking another downside move. While the line is blue, I’ll be long,” he said while pointing to the below chart.

Image Courtesy of Cold Blooded Shiller. Chart via TradingView.

Here’s How Low BTC Could Reel if It Breaks Below $11,300

Although this level might provide Bitcoin with some support in the near-term, a break below it may send the cryptocurrency plunging to new local lows.

One analyst put forth a chart showing that his downside target sits around $10,300.

“BTC – Short plan if it sets up. Blue arrows / trigger points / entries. Looking for an over back under at the pivotal mid range,” he explained.

Image Courtesy of TraderXO. Chart via TradingView.

How Bitcoin reacts to $11,300 as the day drags on should be the factor that determines how it trends during the rest of the week.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin price bounces to $33K but analysts say ‘it’s too early’ to call a bottom

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Cryptocurrency investors found little reprieve on June 22 as the price of Bitcoin (BTC) fell below $30,000 for the first time since January, sparking panic among less experienced market participants who have yet to experience a full market cycle. 

While Bitcoin has been under increasing pressure from multiple sources since early May, the most recent bout of selling has been largely attributed to capitulation by China-based miners who have been forced to abruptly shut down their operations.

Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, Bitcoin price bounced back above the $30,000 level and currently trades for $32,600.

BTC/USDT 4-hour chart. Source: TradingView

The strong bounce came after comments from Brian Nelson, the current nominee for Under Secretary of the Department of the Treasury’s division on terrorism and financial crimes. Nelson said he was going to make the implementation of new regulations around cryptocurrency a priority if he is confirmed.

Miner crackdown in China sparks market turmoil

The pressures put on Bitcoin and the overall cryptocurrency market was highlighted by Élie Le Rest, partner at digital asset management firm ExoAlpha. Le Rest told Cointelegraph that “Chinese market participants have been massively selling during the past month.”

Le Rest also pointed to the “Grayscale unlocking schedule leading to more selling pressure,” resulting in some panic selling by the less experienced traders in the market.

Le Rest said,

“With newcomers in the crypto market seeing their profit and capital getting wipe out by selling waves, newcomers are taking their loss as they can’t stomach this much negative volatility anymore.”

Due to these pressures, Le Rest believes that the market could range in the “lower tranches of $25,000 to $35,000” in July, with the low volume usually seen in August having the potential to “accelerate this downside trend or build the upside trend.”

The upside case for today’s move was provided by David Lifchitz, managing partner and chief investment officer of ExoAlpha, who stated that the activity seen in the market on June 22 “seems to have drawn the line in the sand for BTC at $29,000 and Ether (ETH) at $1,700, given the swift bounce.”

Related: Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

That being said, Lifchitz warns against throwing caution to the wind as the volatile nature of the crypto market makes picking a bottom notoriously challenging.

Lifchitz said:

“However, it’s too early to tell if this is “the” bottom or just a temporary floor before more downside. The lack of any upside catalyst (besides some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back… Paging Mr.Musk, paging Mr.Musk.”

Altcoins see double-digit losses

The altcoin market followed Bitcoin’s lead on June 22 with a majority of tokens seeing double-digit losses as traders ran for the safety of stablecoins.

Daily cryptocurrency market performance. Source: Coin360

The price of Ether managed to rebound along with the price of BTC, helping erase a 15% correction and send the price back above $1,900.

Two tokens that managed to rise above the market turmoil and see positive gains for the day were Livepeer (LPT), which posted a 15% gain and Celo (CELO), which saw its price increase by 9%.

The overall cryptocurrency market cap now stands at $1.303 trillion and Bitcoin’s dominance rate is 47.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.