Technical analysts calling $20k Bitcoin say BTC could fall to $10k
As a result of the fluctuating pricing of Bitcoin (BTC) in the market in recent months, crypto traders and investors alike are keen to determine the direction in which the flagship digital asset will move.
Talking with News from Kitco On August 16, Kevin Wadsworth and Patrick Karim, technical analysts at Northstar & Badcharts, discussed their next price targets for Bitcoin.
Giving a view on Bitcoin after the cryptocurrency reached the target of the $20,000 mark he outlined, Wadsworth indicated with percentages that Bitcoin could fall as low as $10,000 based on technical analysis.
“Looking at the Bitcoin chart, we’re in an inverted arc, the opposite of a cup pattern. We’ve bounced off a bit of a pullback from the $20,000 area and that’s picked us up and formed a bearish rising wedge resistance. »
In particular, he added:
“There are a number of technical analysis techniques and features in this chart that make it more likely that it is going to go down and go down towards the $10,000 – $12,000 target. I would rate the odds at about a 70% to 80% probability of us breaking out to see these lower lows and about a 20% to 30% probability of going to the upside.”
A Bitcoin move to the upside is not out of the question
It’s also important to note that Wadsworth states that “we can’t rule out upside,” but knowing where Bitcoin’s support and resistance levels are located gives investors a heads up.
Elaborating on the potential price target, the arc patterns indicate that Wadsworth noted that BitcoOn is heading in the direction of the 30-week or 200-day moving average, both of which are very similar on this, he opined:
“It’s somewhere just above $30,000 – $33,000 that kind of area when we move up to meet that, I guess we could be somewhere around $29,000 or $30,000. So that’s the upside target and that’s the highest I expect to get We may well start to run out of momentum before then.
The market analyst apparently noticed that many of the cryptocurrencies are already losing momentum and appear to be entering their highs for what he calls “a bear market rally,” Wadsworth added, “we’re either at or very close to those tops. currently.”
Bitcoin hopium headlines
With the “hopium” headlines in the market with the likes of Mike Novogratz saying Bitcoin will eventually one day hit $500,000 and Anthony Scaramucci saying if it goes to $300,000 why does it matter if you buy 20,000 or 60,000 dollars, it seems that many large institutional investors are still bullish on the long term.
Discussing the charts and the long-term projections the investors mentioned above had made, the technical analysts are not looking past $30,000 as a medium-term price target.
Given that Bitcoin correlates strongly with the Nasdaq chart, Karim indicated that “it is very difficult to see higher targets for Bitcoin.” The two analysts agree that cryptocurrencies and Bitcoin are a play on technology stocks. This is partly due to the fact that cryptocurrencies have not been around for a very long time.
As a result, it is difficult to predict how they will react, if and when the stock market will embark on a much longer and more significant decline.
Watch the video: Bitcoin’s chart suggests it could go as low as $10,000
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
