Here’s Why Bitcoin Could Dip to $9,400 Before Rocketing Higher Again
- Bitcoin has flatlined in the $11,000s over the past few weeks as bulls and bears fail to establish a direction.
- BTC now trades at $11,400 as of this article’s writing, having dropped as low as $11,150 on Thursday.
- The cryptocurrency is seen by many to be in a no man’s land due to the resistances above and supports below the BTC price.
- Bitcoin may resolve the current range lower according to some analyses.
- One such analysis suggests it will be on par for Bitcoin to drop towards $9,400 prior to continuing its long-term uptrend.
- Most analysts remain convinced that the long-term trend of this nascent market remains skewed positively due to fundamentals.
Bitcoin Could Dip Towards $9,400 Before Skyrocketing
Bitcoin could drop towards $9,400 before moving back to the upside according to one technical analyst.
The analyst in question shared the chart below on August 27th. It shows that BTC could slide towards the macro supports in the low-$9,000s, then bounce from there into a full-blown bull market.
Although the analyst notes that this scenario is not a certainty, Bitcoin has historically corrected 30-40% lower in bull runs, then proceeded to rally to new macro highs.
“$BTC #Bitcoin High Time Frame plan: Buy the previous resistance and if that fails buy the daily demand retest (see 2016-2017 corrections),” the analyst wrote in regards to BTC’s potential to retest the $9,000s before another leg higher.
Chart of BTC's macro price action with analysis by crypto trader HornHairs (@Cryptohornhairs on Twitter). Chart from TradingView.com
Why the Long Term Trend for BTC Remains Positive
Analysts say that the fundamentals ensure the long-term trend of the BTC market remains positively skewed.
Arthur Hayes of BitMEX recently commented that Bitcoin is poised to move higher due to uncertainty in politics and economics:
“The financial markets are going to whipsaw as politicians contort themselves to continue feeding at the trough. This unfortunately will have lasting effects on everyone’s lives across the globe. Out of the chaos, more people will mistrust centralised authority and look for ways to protect their physical persons and capital from the wanton destruction waged upon them by their rulers.”
This optimism was echoed by Raoul Pal. The Real Vision CEO noted that the macroeconomic trends remain skewed in favor in growth of alternative monies and assets that are scarce relative to fiat currencies.
Photo by Griffin Wooldridge on Unsplash
Price tags: xbtusd, btcusdt Charts from TradingView.com Here's Why Bitcoin Could Dip to $9,400 Before Rocketing Higher Again
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow