What’s Next For Bitcoin Prices After Their Latest Pullback?

Bitcoin prices have encountered some trouble lately, falling more than 15% between yesterday and today, amid a wider market sell-off.

The world’s most famous digital currency fell to just $ 31,035.49 this morning. CoinDesk Data shows.

At that point, the cryptocurrency was down roughly 15.6% from yesterday’s intraday high of $ 36,777.56, as further CoinDesk figures show.

Bitcoin suffered these declines at a time when the digital asset has been trading primarily between $ 30,000 and $ 42,000 since late May.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Given current market conditions, several technical analysts have highlighted the crucial price levels that traders should be watching.

Justin Hartzman, Co-Founder and CEO of Cryptocurrency Exchange CoinSmart, offered a perspective on the matter.

“On-chain metrics show that the SOPR (Spent Output Profit Ratio) for Bitcoin is below one, which means that traders mostly sell their coins at a loss,” he said.

“Given these selling patterns, the observed support level is around $ 30,000.”

“If the bears take over, exceeding $ 30,000 could trigger a deeper sell-off and spark a flurry of activity that will keep prices down,” Hartzman said.

“As such, all eyes will be on the $ 30,000 psychological level as buyers may target it as a potential entry point.”

William Noble, senior technical analyst for the research platform Token metrics, also weighed.

“There’s a lot of support in the neighborhood of 30.5 to 31k. If that breaks, a switch to 24k could develop. ”

Julius de Kempenaer, senior technical analyst at StockCharts.com, offered similar input, stressing that “there is mean support just under 30,000”.

However, he noted that “the real level being observed is the former breakout level at $ 20,000 that BTC should support this far in the event of a decline.”

Additionally, de Kempenaer cited another technical indicator that helped paint a pessimistic picture of the digital asset’s near-term outlook.

“BTC is currently breaking out of a symmetrical textbook triangle that suggests further price moves downward in the near future.”

“The trend is clearly on the downside right now, while the upside is very limited,” he said, indicating that “it’s not really an ideal situation to get back into this market.”

Katie Stockton, founder and managing partner of Fairlead Strategies, LLC, offered a more optimistic view of the subject, stating that:

“Bitcoin’s decline today marks a re-test of support in the $ 34,000 area – it’s not a critical breakdown, but it would be if we see some weak closing prices (today and tomorrow) at current levels.”

She added that “there are oversold conditions in the short and medium term,” which gives Bitcoin “a better chance of gaining a foothold.”

“The short-term momentum has deteriorated, but not to the extent that we have a ‘sell’ signal in the daily MACD.”

“A recovery and a subsequent close above the 20-day MA would be a short-term bullish development that would pave the way for the 50-day MA.”

Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether and EOS.

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