Analyst Warns: Bitcoin Will Have a Long, Bumpy Journey for the Foreseeable Future
Optimistic cryptocurrency traders are hoping the market will head higher as the price of Bitcoin (BTC) dipped below $20,000 again in intraday trading on June 29.
The top cryptocurrency came under pressure during the morning session on June 29, with bears managing to push BTC to a daily low of $19,857 before recovering above $20,000, according to data from Cointelegraph Markets Pro and TradingView.
Here's what several analysts predict for Bitcoin's future. Currently, Bitcoin is struggling to gain momentum and break out of its current price range.
Get ready for a summer of ups and downs
Analyst and anonymous Twitter user IncomeSharks issued a warning to traders looking to enter the market at these prices, posting the following chart showing where Bitcoin could go in the coming months.
"More people end up losing money in the chop zone than in the down zone. I'm bullish on the mid-term for a number of reasons. This summer is all about swing trading and accumulation. I'll be selling most of it late Nov/Dec ( Token)."
Twitter user Altcoin Sherpa also pointed to the possibility of a larger pullback, posting the chart below, noting the importance of the $20,000 level.
Altcoin Sherpa says,
“On the lower time frames, around 20K is going to be a very important area; in my view, if that is lost, we’re going to go down to the range lows around 17K again. If that’s the bottom, honestly, I hope to test 17-18K again."
Price could fall back to $16,400
According to Rekt Capital, recent price action mirrors that of other bear markets and may offer some clues as to where the bottom will be.
During the week of June 20, Bitcoin saw buy-side volume similar to that seen during the 2018 bear market bottom, near the 200-week moving average (MA).
Rekt Capital said,
“However, during the formation of the 2018 bottom, the number of buyers preceded an additional -20% decline. If $BTC fell another -20% soon, the price would reach ~$16,400.”
consolidation leads to accumulation
A more positive outlook was given by Twitter user Miles J Creative, who posted the chart below to support the thesis that a "bull phase is coming".
“In Bitcoin’s history, it has only had its current accumulation structure when it exits and not enters a bear market. Maybe this time is different, but accumulation shows that a bull market is coming.”
The total market capitalization of cryptocurrencies is currently $897 billion, with Bitcoin dominance at 42.7%.