Crypto News

Bitcoin Must Hold $9,000s or Bulls Will Have to “Throw in the Towel”: Analyst

bitcoin price featured image

From the $8,800 lows seen on Thursday, Bitcoin has registered a healthy rebound, recently retaking $9,200.
While this bounce off the lows has made many traders optimistic, the cryptocurrency remains on the edge of a cliff, a new analysis suggests. That’s to say, should prices fall or stagnate from here, BTC may find itself in a serious downtrend.
Bitcoin Must Hold Low-$9,000s
For the past eight weeks, Bitcoin has been in an uptrend from the $3,700 capitulation lows experienced in March. But with the ongoing stagnation in the low-$9,000s, a top analyst has begun to question the efficacy of the bull trend.
“Steady, reliable trend… they all break down sooner or later. This one’s showing subtle signs of weakness creeping into the HTF’s,” he wrote in reference to the chart below, which shows that Bitcoin is about to break below a key trend indicator, which supported the uptrend over the past two months.
Bitcoin price chart from crypto trader Stackin’ Bits (@Stackinbits on Twitter). The chart shows that the cryptocurrency is on the verge of losing a key support level.
The level that Bitcoin must hold, according to the indicator is ~$9,100, as it would confirm that the medium-term market structure remains bullish.
Bullish Factors Remain
Fortunately for bulls, there is a confluence of fundamental and on-chain factors suggesting that Bitcoin will rally out of its stagnation over the coming days, thereby maintaining the bull trend.
Just this week, Bitcoin registered a textbook bullish signal: a golden cross. 
As Investopedia describes, a golden cross is a  “candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average.” In this case, BTC’s 50-day simple moving average just moved above the 200-day simple moving average for the second time this year.
As I analyzed earlier this year, this could be a precursor to parabolic gains in the coming months and years.
Data from Brave New Coin’s Bitcoin BLX index; analysis by this writer, Nick Chong.
Boosting the Bitcoin bull case even further, there have been growing tensions between the U.S. and China regarding the handling over COVID-19 over the past couple of weeks.
While the tensions are still below the levels seen last year during the trade/cold war, there has already been an impact on the trading of the Chinese yuan against the U.S. dollar. The yuan is currently losing strength against the dollar, which actually coincided with the recovery from the $8,800 lows mentioned at the start of this article.
According to Chris Burniske, partner at Placeholder Capital, this trend continuing will bode well for Bitcoin:
“If China’s CNY continues to weaken against the U.S. dollar, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.”

If China’s $CNY continues to weaken against $USD, then we could have a 2015 and 2016 repeat (pictured below), where $BTC strength coincided with yuan weakness. https://t.co/ISVJAZMX5O pic.twitter.com/VApfxe1SFw
— Chris Burniske (@cburniske) May 22, 2020

Featured Image from Shutterstock

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Write a Comment

Related Crypto News

Technicals Suggest Bitcoin Needs To Clear $9,800 For Hopes of a Fresh Rally
Bitcoin is currently correcting higher from the $9,300 support against the US Dollar. BTC price must clear the $9,740...
Podcaster Joe Rogan Uses Crypto-Powered Brave Browser
Joe Rogan and Reggie Watts just talked up Brave to millions of people. Podcaster Joe Rogan has revealed that...
Hive’s Transactions Overtake Steem’s as Splinterlands Joins the Rebellion
The most-popular Steem DApp has moved to Hive, resulting in daily Hive transactions overtaking Steem for the first time....
US Regulators Target Bitcoin ATMs: 88% of the Funds Exit the Country via Machines
Bitcoin automated teller machines (BATMs) will become the next target for regulators, as world governments tighten screws on money...
‘Crypto Mom’ Nominated to Serve as SEC Commissioner Until 2025
Hester Peirce, affectionately known as ‘Crypto Mom’, looks set to serve in the US Securities and Exchange Commission until...
Walmart China Subsidiary Teams Up With VeChain to Trace Food Products
VeChain has partnered with a Walmart China subsidiary to increase supply chain transparency for its food products. Sam’s Club,...

Featured Crypto News

Bitcoin Sells Off At $9.5K Ahead of Trump’s China Response; What’s Next
Bitcoin breaks below $9,500, a crucial support level, a day after breaching it to the upside. The cryptocurrency pared...
Bitcoin May Surge as Chinese Yuan Gets Fixed to Lowest Price in a Decade
Unlike Bitcoin and other free markets, the Chinese yuan market is fixed and somewhat controlled by the country’s central...
Coinbase Now Supports Tezos Staking Rewards for UK and Some EU Users
Major crypto exchange Coinbase is rolling out Tezos staking rewards for users in the United Kingdom and three European...
Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan
“There is no country with more to lose from the disruptive potential of digital currency than the United States,”...
Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges
Ethereum nosedived below the $202 support zone against the US Dollar. ETH price revisited the $192 support and it...
Bitcoin Traders Now Eye $6-7Ks After 4 Failed Attempts to Break $10K
The price of Bitcoin is set to test lower levels as support after numerous attempts to break $10,000 have...