Just days ago, it looked like Bitcoin was headed up towards the sky – but this morning, BTC values have slid under the $9000 mark for the first time this month, and a lot of that bullishness we saw last week has gone into hiding.
What happened?
Writer Omkar Godbole at Coindesk, who covers Bitcoin values routinely, talked about a “loss of upward trajectory” February 19:
“Prices fell by 5.8 percent, violating the bullish trendline rising from Jan.3 and Jan. 26 lows,” Godbole writes this morning, in analyzing the BTC drop. “The downside move gathered pace after bull failure to defend $9,400 on Monday activated a bearish head-and-shoulders pattern on technical charts.”
Citing “signs of seller exhaustion” and some positive candlestick action, Godbole suggests that Bitcoin could be set to vault what he calls the “psychological hurdle” of $9000. However, he also makes the interesting prediction that under a certain price point, that bullishness will not take hold:
“The bias will remain bearish as long as prices are trading under the former support-turned-resistance of the head-and-shoulders neckline, currently at $9,430.”
Essentially, Godbole is arguing that the lack of a price floor is what’s keeping the value down, using the head and shoulders pattern analysis as ballast.
Let’s hear from some others on current BTC price action.
“Alright… where are all of you who said you were waiting for $8,500 handle to buy in??” tweeted Mati Greenspan just a while ago, suggesting that traders may buy on the dip. (Greenspan, curiously, also posted video of his dad using a Bitcoin ATM Jan. 7.)
Elsewhere, analysts suggest that the BTC drop is really not a big deal.
“For Bitcoin, a 10% price dump in a day is nothing to fuss about,” writes Dare Shonubi at Coinpedia. “As Bitcoin grows a reputation along the lines of such price volatility, investors are fast becoming more tolerant of its various range-bound intraday price swings. However, when Bitcoin crosses critical areas of interests, this may sometimes stir criticism and hopes, altogether causing controversy.”
Stay tuned if you have skin in the BTC game.