Bitcoin Likely to Break Past $10,000 in Next Bout of Price Volatility

Home » Bitcoin » Bitcoin Likely to Break Past $10,000 in Next Bout of Price Volatility
November 6, 2019 by
Bitcoin Likely to Break Past $10,000 in Next Bout of Price Volatility

The Bitcoin (BTC) price is once again in a lull-like state, having seen barely any bouts of volatility over the past few days. Due to this, trend indicators have begun to tighten, as has volume, signaling to many that volatility is inbound.

While this impending bout of volatility could easily bring BTC back down to the $8,000s, potentially in a move that may establish new multi-month lows, analysts are currently leaning bullish on Bitcoin, having observed a confluence of positive technical signals that imply upward continuation.

Bitcoin Ready to Burst Past $10,000?

Popular Twitter analyst Crypto Thies recently noted that Bitcoin is currently looking rather positive as the volume moving average implies incoming volatility. In the chart below, he showed that when BTC bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average.

He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks. Although Thies didn’t give a concrete price target, his chart implies that BTC’s price will begin to flirt with $14,000 again by early 2020.

Thies isn’t the only one expecting a move beyond $10,000 in the coming few weeks and months. A fractal pointed out by Starbust implies that Bitcoin will rally to the upside to retake $10,000 and beyond in the coming weeks.

And to put a cherry on the cryptocurrency cake, a technical signal that printed before the move from $7,500 to $10,500 recently printed a buy again. If historical precedent is of any current relevance, Bitcoin may soon rally higher, likely to retest the mid-$9,000s or high-$9,000s in an attempt to establish new multi-week highs beyond $10,000.

Quick Pullback First

While Bitcoin’s medium-term bull case is obviously building, there may be a short-term drawdown that comes first. Analyst Data Dater, as reported by NewsBTC previously, recently found a few signs that imply BTC will soon take a breather, which will be a move that will see the cryptocurrency head back into the $8,000s. He noted that indicators are “approaching overbought” on the four-hour, six-hour, and 12-hour charts, while the one-day chart and the two-hour chart are already flashing overbought signals.

Also, the BitMEX funding rate, which many say can be used to discover local tops and bottoms in the Bitcoin market, has been trending “very high for three consecutive periods.”

Market Update:
1/ Approaching overbought on 4H, 6H, 12H.
2/ Overbought on 1D, 2H.
3/ Approaching overbought on 2D, 3D.
4/ Bitmex Funding very high for three consecutive periods.
5/ QA indicator turned blue (overbought).
— (Stationary) Data Dater (@datadater) November 5, 2019

Source: News Btc

Leave a Reply

Your email address will not be published. Required fields are marked *

© Copyright 2018 Coinstituency. Risk Disclosure: Coinstituency will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Cryptocurrency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. Coinstituency would like to remind you that the data contained in this website is not necessarily real-time nor accurate, meaning prices are indicative and not appropriate for trading purposes. Therefore Coinstituency doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Coinstituency may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.