Bitcoin Price Closing Below $9,000 Could Be Really Bad for Bulls

News
Fri, 07/10/2020 - 07:58
Alex Dovbnya
The Bitcoin price could be on the cusp of a painful correction, according to multiple traders
Cover image via stock.adobe.com
Contents

The Bitcoin price could be in for a major correction, according to a tweet posted by cryptocurrency trader Josh Olszewicz.

He believes that the benchmark cryptocurrency could collapse to $7,100, its lowest level since April 23, if it prints a daily close below the do-or-die $9,000 level on its daily chart.

image by @CarpeNoctom

Related
Bitcoin Price Breakout ‘Imminent,’ According to Glassnode Data

All eyes on a pivotal cross

Olszewicz, whose analysis is based on the Ichimoku cloud indicator, also writes that the bulls could regain control over the market if a Tenkan-Kijun (TK) cross ends up taking shape. 

This occurs when the Tenkan-Sen (a fast-moving average) surges above the Kijun-Sen (a slow-moving average), which means that the current trend is stronger.

In order for this cross to be bullish, it has to happen above the cloud. Conversely, if the cloud gets breached with a plunge below $9,000, Olszewicz believes that it’s high time to open shorts.

image by @CarpeNoctom

At the time of writing, Bitcoin is changing hands at $9,143 on the Bitstamp exchange after dipping three percent on June 9, which coincided with the Dow, one of the major U.S. equities market indexes, erasing its weekly gains. 

A foreboding chart 

Josh Rager, another prominent cryptocurrency trader, also believes that it’s ‘almost time’ for a major move.

In his chart, he shows that Bitcoin’s current price action is remarkably similar to September 2019.

image by @Josh_Rager

Back then, a massive descending triangle resolved with a painful breakdown on Sept. 25 that commenced a multi-month downtrend.

However, given Bitcoin’s high correlation with stocks, chart patterns might not necessarily work this time. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings