The Bitcoin price has been stuck in a consolidation range between $10 000 and $12 000 over the last week with many traders waiting to see which way the Bitcoin price will break next. So which way will the Bitcoin Price go? No one knows for sure but we can take a look at what some of the professional traders are saying to get an idea.
As humans, we are conditioned to put more weight on certain round numbers, similar to major milestones they stand out and can prove to be barriers for price movements. Since the price charts can be thought of as merely a reflection of the participants’ emotions in the market we can easily understand why these “round” numbers are significant. Bitcoin Price has been wrestling with the $12 000 barrier ever since it collapsed below if after the parabolic run to nearly $14 000 (another round number). Traders on CryptoTwitter seem to mostly be in agreement that if $12 000 Bitcoin price is breached on a closing basis on higher than 4 hours, it is highly likely the Bitcoin price highs will be tested again and perhaps even beyond.
Bitcoin is sitting above its long term moving averages on all time frames, this includes the shorter Moving Averages and the shorter Exponential Moving Averages. The weekly time frame has held above the 9 EMA, often a canary in the coal mine type of indicator the 9 EMA can signal early signs of change in trend if broken either way. Closing another weekly candle above it is leading traders to lean towards the bullish side until signs of a reversal show up.
When looking at the weekly time frame the week of 24th June 2019 closes on a high volume shooting star type of candle, this is normally seen as an extremely bearish signal that traders use to gauge a trend reversal on that time frame. The important next step for the trader is to watch the subsequent candle (week) to see if there is a continuation in price action from that candle. As can be seen with the subsequent weekly candle close of 1st July 2019 there has not been a continuation to the downside, rather the candle closed well above the previous candles close, however, it is still below the high of the previous candle which means Bitcoin is not out of the woods yet.
More than anything there is strong agreement that it is a time to be cautious, there are signs that Bitcoin could be close to a trend reversal, however, until that is confirmed a good trader will continue with the former trend, as the saying goes, “the trend is your friend till the end”.
What do you think, which way will the bitcoin price go? Will we see blue skies above $14 000 this coming week or month or do we need to recover lower down and allow more buying opportunities for those who have missed out? Let us know on our Twitter or Reddit page. If you would like to learn more about Bitcoin why not visit our Bitcoin101 Portal.
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