Bitcoin will get back on its feet soon enough, experts claim

Bitcoin BTC
“Bitcoin” by cafecredit is licensed under CC BY 2.0

Key Takeaways:

  • Bitcoin crashed instead of soaring after El Salvador announced the first ever Bitcoin legal tender.
  • Some experts believe that the cryptocurrency will recover soon enough.

YEREVAN (CoinChapter.com) – Bitcoin (BTC) had tough three days, with a risky 11 percent nosedive overnight. However, several experts believe green candles are just around the corner. As of the moment, the alpha crypto consolidated at $47,008 in the European session Thursday, taking its time and moving sideways rather than adopting a distinctive bias.

What happened?

In hindsight, all crypto supporters cheered on September 7, when El Salvador adopted Bitcoin as legal tender. The unprecedented move promised to rocket the flagship cryptocurrency to new all-time highs. Some BTC proponents even suggested celebrating September 7 as Bitcoin day to commemorate global finance’s “new era.”

Michael Saylor, the CEO of a business intelligence firm MicroStrategy (one of the earliest Bitcoin investors), cheered alongside the traders.

Also read: Bitcoin (BTC) falls below $43,000 following El Salvador adoption.

However, Bitcoin price action refused to comply and unexpectedly dropped over 10 percent overnight. The plunge triggered a massive liquidation wave (over $3.5 billion worth of liquidations).

Despite the dive, some experts, along with analytical metrics, predict an upcoming recovery.

Not so bad for Bitcoin after all

Jake Wujastyk, the chief market analyst at TrendSpider technical analysis software company, is optimistic about the future price action.

“The first thing to note is that while price has been very volatile the last few days, the pullback was to a known level – the Anchored VWAP from the All-Time High”.

commented the analyst.

In detail, the Anchored VWAP (Anchored Volume Weighted Average Price) guides day-traders and reflects both the overall trend (bearish/bullish) and the value of a given digital asset or stock. The VWAP is represented as a single wave on the charts, much like the moving averages.

“It is almost uncanny how accurate the Anchored VWAP has been for Bitcoin. Price pulled back directly to it, and then stopped declining. It may break through it and that would be bearish, but for now, bulls should find this to be encouraging.”

concluded the expert.

Also read: Lawmakers in Ukraine vote to legalize and regulate cryptocurrencies.

Michael Van de Poppe, the CEO of consultancy and education platform Eight, also offered his technical analysis of the BTC chart. He pointed out that Bitcoin will head back towards the $50,000 line if it manages to conquer the resistance at $46,500.

The analyst predicted no major resistances after the noted line and saw BTC rise to at least $48,000 in the best-case scenario.

Moreover, analytical platforms Glassnode and Santiment show bullish data for Bitcoin. There’s a remarkable rise in the BTC supply in HODLing addresses. The sharp increase started after the mid-May crash, slightly pausing in July, then picking up again.

The data shows that traders would rather hold their BTC than trade it for other crypto or fiat currencies.

Also read: SEC doubles down on crypto exchanges. Is Coinbase next?

Bitcoin daily chart

Bitcoin has been volatile for the past week. Admittedly, the alpha crypto had seen worse dips this year alone when BTC value dropped below $30,000 on July 20. After the plunge, it soared in a new rally to reach $50,000 and brought the rest of the crypto market along for the ride. As experts noted above, the current dip could also result in a new uptrend.

The leading cryptocurrency has already managed a small green candle on the daily chart, but the upcoming sessions will show a consistent trend or a temporary fluctuation.

Bitcoin (BTC) daily chart. Source: BTCUSD on TradingView.com
Bitcoin (BTC) daily chart. Source: BTCUSD on TradingView.com

Also read: Avanti Bank CEO Caitlin Long thrashes NYT’s crypto alarm article

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