After moving above $10,000 for quite a few days, Bitcoin has now slumped down to about $9888.
The move came, as Cointelegraph’s Horus Hughes puts it, in minutes:
“For the past few days, the price of Bitcoin has been hovering above the 20 Moving Average and drawing closer to the moving average as volume continued to taper off and lower highs were set each day,” Hughes writes. “As this price was hit for a third time on Wednesday amidst the continuation of lower highs, a bearish breakdown was on the cards.”
Hughes mentions a terminating point of a descending wedge pattern as a harbinger of future random walk outcomes, citing volatility and a potential “explosive upside move.”
Citing the 111 day moving average, Horus says the indicator lines up with $9600 support, where a drop below this points to the base of the descending wedge around $9400. That level, he says, has continually supported Bitcoin values since the middle of July.
Hughes also looks at Bollinger bands and other technicals with chart activity in which experts say “macro trumps micro.”
“It’s now very possible that BTC just goes sideways for a while now,” says Philip Swift, as quoted in the piece. “If that scenario plays out, then it is worth keeping an eye on Historical volatility — currently dropping quickly. It would present a lovely long position trade opportunity when it drops down to the green box.”
George Georgiev at Cryptopotato, looking at the aftermath, wonders if Bitcoin bulls “celebrated too early,” suggesting also that “altcoin season might be postponed.”
“The cryptocurrency market was filled with positivity throughout the past couple of days as all of the major coins were trading in the green,” Georgiev writes. “A lot of them scored double-digit gains, causing many to suspect that we had entered a new altcoin season. However, this notion was quickly dismissed, as today the entire market is bleeding red. Bitcoin plunged around $600 in a massive red candle, bringing all altcoins down with it.”
However, many, like indefatigable BTC cheerleader Anthony Pompliano and others, are suggesting that down, for Bitcoin, is not out, and encouraging hodlers to hold the line for big increases down the pike. Stay tuned for more on Bitcoin fluctuations.
