Description
The Bitcoin price is solid. Analysts are confident of another bullish wave that will lift BTC to $100k. According to PlanB, the Stock-to-Flow (S2F) creator, candlestick arrangements are perfectly aligned for a lift-off. All indicators point to an inevitable bull ran that will drastically pump the value of the world’s most valuable digital asset. Are … Read more
The Bitcoin price is solid. Analysts are confident of another bullish wave that will lift BTC to $100k. According to PlanB, the Stock-to-Flow (S2F) creator, candlestick arrangements are perfectly aligned for a lift-off.
All indicators point to an inevitable bull ran that will drastically pump the value of the world’s most valuable digital asset.
Are bulls exhausted?
But in the meantime, there could be short term impediments stemming from profit-taking. The vigorous decline of the Bitcoin price after it tested $12,000 was instant leading many to believe that it was the action of algorithms, all programmed to take profit at $12,000.
Encouragingly, associated volumes were comparatively lower than those of July 27. This is when BTC broke and close above $10,500, printing new 2020 highs.
Bitcoin’s boom also came at a time when the USD was stuttering. While it may recover after sinking to a 12-year low against several fiat currencies, its next trajectory will likely shape the Bitcoin price in the immediate term.
Bitcoin ain’t going away
From a fundamental angle, policymakers are beginning to trust in decentralized systems and cryptocurrencies.
According to U.S. Congressman Tom Emmer, Bitcoin’s decentralization is its value proposition. Because of this, it is its trumping card against fiat—a settlement system that favors a select few.
These are mostly folks in control, those in authority. In a podcast hosted by Anthony Pompliano of Morgan Creek Digital, he said:
As we come out of the crisis, Bitcoin ain’t going away. It’s gonna get stronger. And now [Acting Comptroller of the Currency] Brian Brooks is saying “Hey, institutions, you can start banking this stuff. You can provide a home for it, you can start working with it.
With Bitcoin not going away anytime, its decentralization will likely trigger the next wave of contemporary payment systems where the government doesn’t play a role.
Bitcoin price analysis
After rallying to over $12,000 before a shocking 13 percent drop, the Bitcoin price remains shaky against the greenback. Up just three percent and still lagging ETH in the last trading week, candlestick arrangement points to bears.
In the daily chart, BTC prices are printing a series of lower lows from the upper BB. Accompanying this decline is shrinking trading volumes. Also, the Bitcoin price is still ranging within Aug 2 high-low.
From an effort versus results point of view, this is bearish. As such, bulls must either close above $12,000 with sharp trading volumes exceeding those of Aug 2.
On the other hand, if prices fall below Aug 2 lows, chances of BTC shuddering below $10,500 and worse to $9,500 remains high.
In light of this, aggressive traders may exit their positions and set pending orders above $12,000. Any fall below $10,500 will set the ball rolling for $9,500 benefiting derivatives traders with leverages.
Chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.