$9,000, the Bitcoin Price to Watch
After a number of hours flirting just above and below $10,000, Bitcoin (BTC) has decided that it is heading lower. As of the time of writing this, the cryptocurrency is changing hands for $9,750 apiece, with it being down by 4% in the past 24 hours.
Although Bitcoin is still over 5% higher than its monthly low of $9,150, many have begun to worry that the cryptocurrency is entering some precarious territory, even with many signs pointing towards a bull run.
Most notably, analyst CryptoHamster recently let his followers know that Bitcoin is currently rapidly nearing its non-linear regression curve, which has acted as resistance and support for the cryptocurrency in bull runs and bear markets alike, stretching all the way back to 2010. Essentially, it is one of the most important lines on Bitcoin’s long-term chart.
What’s worrying that the curve is currently sitting at $9,050. Hamster notes that if BTC loses that ever-growing level on the daily chart, it would suggest that “things may get nasty”. Indeed, considering the importance of that regression curve, the temporary loss of that level could deal a blow to investors that believed a bull run was right on the horizon.
The non-linear regression curve isn’t the only key level currently situated around $9,000. As Level’s Josh Rager, a prominent cryptocurrency analyst, explained earlier this week, with BTC recently closing the daily candle weak, he is inclined to suggest that the next weekly support for Bitcoin to hit is $9,000.
Seeing that $9,000 has two major lines crossing it, the leading cryptocurrency losing that price point could result in even further losses. So, is a move under $9,000 being forecasted by technical indicators?
Unfortunately, yes. Nebraskan Gooner noted prior to the move under $10,000 that if the 0.382 Fibonacci Retracement of the $14,000 rally was lost, which has since happened, a move to $9,000 “and likely lower” is entirely possible. The analyst suggests that the most likely point that BTC could reach is the “golden pocket around $7,500, which also holds the 99-day simple moving average.”
Also, Mr. Anderson recently noted that on Bitcoin’s four-hour chart, the 55 and 200 moving averages recently exhibited what is known as a death cross. While he notes that this is “not a death sentence”, as BTC is currently in the midst of a macro bull trend that kicked off in early-April, previous death crosses in “macro bull trends” resulted in flash crashes, then “raging bull plays”. If history is of any indication, Bitcoin may spike lower in the coming days, then rally back to pre-crash levels within a few days’ or weeks’ time.
Title Image Courtesy of Marco Verch Via Flickr