Bitcoin is heading for a downtrend, analysts say | CryptoNews


Key facts:
  • Bitcoin price could fall to USD 7,000, analysts say.

  • Price movements announce a possible corrective movement.

Bitcoin price movements make some analysts believe that a downward trend of that cryptocurrency is approaching in the short term.

The claim that bitcoin is heading for a downtrend is based on the fact that if the cryptocurrency failed to break the USD 11,000 barrier, the price could reach up to USD 7,000 before regaining momentum. Financial analyst Alberto Cardenas says that this classic corrective structure puts all people entering BTC at risk above USD 10,000.

bitcoin downtrend
Image: @acardenasfx Twitter account.

Guillermo Escudero, market analyst, points out that in order to understand the downtrend that other analysts pose, the following data must be considered to have a better perspective:

If we analyze the weekly graphs of Bitcoin, we can see that since December 15 of last year the cryptocurrency had a bullish momentum that only rested on June 2 of this year.

bitcoin downtrend

Seeing the 1-hour chart we can see that the moving average of 50 crossed over 200 periods (Golden Cross), which implies a clear buy signal.

bitcoin downtrend

As can be seen in the following graph, he has respected the psychological support between 9,000 and 9,500 in the last 5 impulses from July 1 to August 30.


Data that clarify the picture

Another key fact is the volume reflected by Bitcoin in the first half of 2019. On January 1, Bitcoin had a volume of USD 4,324 million, but on June 30 it reached USD 27,256 million. The 530% increase in volume is important for the price to remain stable, since a volume that supports it is favorable for a bullish momentum.

The mentioned data can be more easily appreciated if we remember the movement of the price of Bitcoin since 2018. In 2018 the BTC reached from USD 13,657 to USD 3,843 which represented a 70% drop in its value; the current price of BTC, about $ 10,228 according to CoinMarketCap, represents a recovery of about 180%.

If we consider the current scenario, together with the technical data, we can conclude that the so-called downtrend that some market analysts mention could be nothing more than a break from the bullish momentum that Bitcoin is reflecting. And although it is not yet possible to establish with certainty that the price of the BTC will reach USD 7,000 or not in the short term, the indicators reflect that Bitcoin is increasingly gaining more stability.

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