Bitcoin is steadily plodding along after a gigantic spike Monday, where all of the regular resistance levels were shattered by a move up to $7,600. It didn’t last long, because in day trading, that price came back down to under $6,800 where it has stayed since.
Today, Bitcoin value seems locked in right around $6,700, leading analysts to talk about a “sideways trend” and predict either continued horizontal value, or a decline on a long arc.
Over at Bitcoin Exchange Guide, Azeez M. talks about a “bearish trend zone,” noting common resistance and support levels.
“There is the likelihood of price falling to the support zone,” M. writes. “Trading is not recommended as the market is quiet.”
In the same breath, though, the analyst also notes that some Bitcoin holders may want to quietly lay down their equities and get out before volatility strikes.
One thing’s for sure – traders and analysts and everyone else have turned away from looking at Tether (USDT) as a bellwether for crypto. Over the past week, Tether’s tanking has changed the realities around some of the minute measurements of crypto strategies that use one coin’s value to predict the value of another.
“From now on, we will analyze the Bitstamp Bitcoin USD chart,” Yuval Gov wrote yesterday at CryptoPotato, arguing that “the overall momentum is still bearish.”
Analysts have these support levels at around $6,400 and in a range down to $6,100 – so far, today’s Bitcoin values have not been testing those supports at all – in fact, there’s been robust structure around maintaining above $6,500 and that’s putting it conservatively.
So you could say that things are fairly quiet – and you could say that this stability signals some amount of at least temporary market support – we’ve seen that you’re not going to get a corresponding sell-off after Monday’s price spike. However, where crypto will go learn long-term is still a matter of opinion.
Over at DailyForex in today’s video news, a guy named Chris talks about the lack of a key signal from what he calls the “shooting star” Monday that would indicate a coming rally. He also mentions the possibility of breaking down to as low as $5,000. But then there’s the third option that many believe is most likely – more of that crab-crawl. “The market really goes to sleep at that point,” Chris says.
As we’ve pointed out many times, some of the most ardent believers are buy-and-hold traders – they’re not going to be dumping any Bitcoin in this quiet moment. They’re going to be holding long, waiting for those oft-made predictions of Bitcoin value at $17,000 by 2020 or $25,000 by 2021. Some of them would say that’s the way Warren Buffett and other clever stock kings did it – not by day trading on wild volatility, but by putting their bets on ideas that were ahead of their times.
Keep an eye on today’s chart to see if this stability lasts throughout the day and the week.