Assessing the near-term movements of the Bitcoin (BTC) price, the analyst provided information about possible resistance and support points to be tested.
Joseph Young, one of the names who supported the cryptocurrency market with his articles, stated in his assessment that “the BTC price remains stable above $10,000” and shared his views on the direction of his next move.
Recalling that Bitcoin, which recently rose to $12,100 and faced intense selling pressure, fluctuated between $9,800 and $10,500, Young stressed that most of the daily volumes in the BTC market consist of futures, futures contracts directly affect the price.
Why did Bitcoin, based on $12,000, fall?
BTC / USD was rejected at 12,000 on September 1, and as of September 8, the price of Bitcoin reached $9,996.
Speaking to the press, Dennis Vinokourov, head of research at BeQuant, and Guy Hirsch, general manager of the eToro platform, attributed the drop in the price of Bitcoin to technical factors.
Vinokourov noted that such a result was caused by miners selling BTC, which they extracted, and by selling pressure from whales that made a profit.
Hirsch stressed that during periods of low volatility, price falls can intensify because there are fewer traders in the market.
How is the long-term outlook for Bitcoin price?
As we enter the final quarter of the year, analysts remain neutral on the direction of Bitcoin’s price. In retrospect, BTC has been performing strongly in the last two months of each year. These statistics are topped by an all-time high in December 2017.
Looking at the table above, we see a month-to-month closing at $11,600 in August for the first time since the record high in 2017. The downward trend began at the end of the month, although it was above $12,000 in August.
Among the main factors that could contribute to bitcoin’s rise can be mentioned the rising inflation and zero-interest policies implemented by developed countries. Low-interest rates are a factor that could lead to a bull market for Bitcoin, just like gold.
Bitcoin in unknown waters
Some analysts expected an increase and others expected a decline, Young said. The trader, known as BTC Jack Sparrow, suggested that Bitcoin could lose 50 percent of its value.
In the short term, the $11,000 resistance level needs to be exceeded again in the short term for Bitcoin’s bullish scenario to become a reality. Experts expect BTC to rise to $11,400 if it enters an uptrend where it will face strong resistance.
If that doesn’t happen and a fall occurs, the descent into the futures gap of $9,650, which has not yet been filled, is expected. Then they underline that a downgrade to $8,800 is possible.
“This break in BTC is not a good sign,” commented economist Shant Manukyan, referring to the levels below $10,000 that Bitcoin tested many times last week.
Another published report highlighted that the eyes of Bitcoin whales stood at $8,800, and they would receive a large amount of BTC if they landed in this area.