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Why Bitcoin Could Slingshot Back To Lows Before Gaining Momentum

Why Bitcoin Could Slingshot Back To Lows Before Gaining Momentum

Bitcoin price is making its best attempt yet to climb back above $40,000 since the big crash in May. Thus far, the phrase “sell in May and go away” has worked like a charm, and it could take longer before buying coins back again is a profitable strategy.

That’s because the top cryptocurrency is struggling to hold above the middle-Bollinger Band, and if it can’t hold, it could result in another retest of the bottom of the band. Another retest could finally push the price per <a class="wpg-linkify wpg-tooltip" title="

Coin

A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.

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” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin below support, making a clean sweep before a reversal.

Deja Vu: Why A Historic Move Could Be On The Horizon

For anyone who was around the crypto market during 2019, it feels like deja vu. At above $10,000, it wasn’t uncommon to see traders claiming the next stop was $100,000 or more. They were wrong, and Bitcoin crashed.

When it did, and sentiment shifted bearish, the cryptocurrency reversed with the third most profitable day on record. Anyone familiar with the October 2019 “China pump” knows that things can turn around fast, even when they seem at their worst.

Related Reading | Time To Pay Attention: Bitcoin Indicator Behavior Mimics Historic Rally

Indicators are primed in the same way and so is sentiment, and the latest rally following a morning star reversal and dragonfly doji serve up plenty of bullish signals.

Why then, are the Bollinger Bands warning of one more potential collapse – matching the China pump a lot more closely than the current price action.

bitcoin bollinger bands

bitcoin bollinger bands

Could Bitcoin sweep lows one more time? | Source: BTCUSD on TradingView.com

Bitcoin Price Could Slingshot Lower Before A Bounce Back To Highs

The Bollinger Bands created by John Bollinger are a versatile technical analysis tool that measures volatility, highlights support and resistance, and much more. When the bands tighten or squeeze, it is a sign a massive move is coming ahead, and so far the tool is signaling something shocking should soon happen. But when?

Related Reading | Bitcoin Daily Dragonfly Doji Gives Bulls Hope Of Sharp Reversal

Not quite yet, if the middle-Bollinger Band – a simple moving average – is lost as support. During the prelude to the historic China pump, the middle-BB was lost not once but twice.

bitcoin repeat wiWw1sIs

bitcoin repeat wiWw1sIs

Indicators also match the last time Bitcoin got so confusing | Source: BTCUSD on TradingView.com

Bollinger Band Width is at similar lows, but should hang there a while long. BB% could sweep the current low like it did in 2019 before slingshotting back upward.

Finally, the LMACD is also exhibiting a very similar pattern and if another bearish crossover happens, it could be a massive trap like the last time around. But for now, beware of one more sweep of lows before a reversal.

Featured image from Deposit Photos, Charts from TradingView.com

Source

TA: Bitcoin Signals Fresh Decline, Why Dips Could Be Limited In BTC

TA: Bitcoin Signals Fresh Decline, Why Dips Could Be Limited In BTC

Bitcoin price extended its upward move above the $37,500 resistance against the US Dollar. BTC failed to clear $38,500 and it is now correcting lower.

  • Bitcoin traded above $38,000, but it failed to continue higher above $38,500.
  • The price is currently well above $35,000 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline, but the bulls are likely to remain active near $35,000.

Bitcoin Price Correcting Gains

Bitcoin settled well above the $35,000 and extended its upward move. BTC even broke the $37,500 resistance, but the bulls failed to gain strength for a break of the $38,500 hurdle.

A high was formed near $38,425 and the price is now moving lower. It broke the $37,000 support level to start the current correction. There was a break below the 23.6% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high.

Besides, there was a break below a key bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair. However, the pair is still well above $35,000 and the 100 hourly simple moving average.

Bitcoin Price

Bitcoin Price

Source: BTCUSD on TradingView.com

On the upside, an initial resistance is near the $37,000 level. The first major resistance is near the $37,500 level, above which the price likely to revisit the $38,500 resistance zone in the near term. The main resistance is still near the $40,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $37,500 resistance, it could extend its decline. An initial support on the downside is near the $36,000 level.

The first major support is near the $35,500 level. The main support is now forming near the $35,000 level and the 100 hourly SMA. It is close to the 50% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high. A downside break below the $35,000 support zone could push the price back into a bearish zone.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $36,000, followed by $35,000.

Major Resistance Levels – $37,500, $38,500 and $40,000.

Source

Can Bears Force Michael Saylor To Sell His Bitcoin? Analyst Shared Bullish Theory

Can Bears Force Michael Saylor To Sell His Bitcoin? Analyst Shared Bullish Theory

In May, an alleged “insider” claimed that a group of Bitcoin Whales were trying to get a series of positions liquidated from a big player. Justin Sun, founder of blockchain TRON, and Michael Saylor, CEO of software company MicroStrategy, were the top 2 suspect targets.

The rumor has extended as Saylor announced new BTC purchases and issued more debt for the company to expand its BTC holdings. As it was reported recently, the company will use $1.6 billion obtained via a debt instrument to buy more Bitcoin.

With the cryptocurrency losing over 50% of its value in over a month, many wonder what will happen if the downtrends continue, will MicroStrategy’s position be compromised?

Anonymous analyst “degentrading” tackled this “Saylor Fud” and claims that the executive’s and his company’s situation is “not as dire”. The analyst said:

The latest bond issuance will only be senior secured on the BTC that he plans to accumulate on the proceeds from this issuance. I.E – Even if this 400M bid fails to support the market and there is liquidation – the 92,079 of BTC held will NOT be at risk.

The analyst went more in-depth on MicroStrategy’s capital structure. The company has 2 outstanding bonds to be mature by 2025 and 2027. The former has a 0.75% interest and the other has none, as seen below.

Bitcoin BTC BTCUSDBitcoin BTC BTCUSD
Source: Degentrading (@hodlKRYPTONITE)

Will MicroStrategy Sell Their Bitcoin (BTC)?

The software company must pay around $5 million annually in interest for their debts. As the analyst concluded, MicroStrategy generates around $50 million in net profit per year. In theory, the company can pay for its financial commitments.

This means that from now till 2025 at least, Saylor CANNOT be liquidated as long as he pays the interest on the 0.75% 2025 bond.

Other users claim that Michael Saylor could be forced out of his position as CEO. The company would then be free to sell their Bitcoin, in case of a major drop in the crypto market. With over 90,000 BTC in their treasury, this would create enough selling pressure to push BTC’s price further down.

However, Saylor owns 25% of the business and holds 72% of the shares with 10x voting power, as the analyst discovered: “Saylor CANNOT be forced by anybody to sell”.

“Degentrading” reached three important conclusions. First, the most recent debt acquired by MicroStrategy will not have an effect on their overall Bitcoin holding; the company cannot be liquidated out of its position. Second, the interest rate is too low to put the company at risk.

Finally, Saylor has enough control over the board, due to his high voting power, to keep his post as CEO and hold their BTC.

As the chart below shows, MicroStrategy (MSTR) shares were once valuated at $3,000 during the year 2000. By the end of that year, the company went on to lose 99.6% of its value until their BTC purchase announcement in 2020.

Bitcoin BTC BTCUSDBitcoin BTC BTCUSD
Source: Degentrading (@hodlKRYPTONITE)

For over two decades, as the analyst said, Saylor has held his position. The recent crash in Bitcoin’s price is but “a blip” in the executive’s history with the market.

At the time of writing, BTC trades at $36,553 with gains in the lower timeframes, but heavy losses in the 2 week and 30-day charts.

Bitcoin BTC BTCUSDBitcoin BTC BTCUSD
BTC with bullish momentum in the 24-hour chart Source: BTCUSD Tradingview

Source

Bitcoin Price Prediction: BTC/USD Price Stables Above $36,500

Bitcoin Price Prediction: BTC/USD Price Stables Above $36,500

Bitcoin Price Prediction – June 9

The Bitcoin price is trading nicely above the $36,500 and the coin must climb above the $37,000 resistance to continue higher.

BTC/USD Long-term Trend: Bearish (Daily Chart)

Key levels:

Resistance Levels: $43,000, $45,000, $47,000

Support Levels: $28,000, $26,000, $24,000

Bitcoin Price Prediction
BTCUSD – Daily Chart

BTC/USD begins to improve today, although many coins are following the footstep of Bitcoin as well. The Bitcoin price also reflected a similar movement as the coin improve in price movement at the moment. Within the first few hours of today’s trading, BTC/USD could have moved up from $32,408 to $36,950 and now $36,530.

Bitcoin Price Prediction: Ready to Move Higher?

The Bitcoin price is yet to cross above the 9-day and 21-day moving average as the pair may be settling in a tight range between $32,000 and $38,000 below the 9-day and 21-day moving averages. In addition, this current session is seeing Bitcoin and other major cryptos exchanging in a good tone.

However, the Bitcoin price and the daily candle are trading at $36,530 below the 9-day and 21-day moving averages. The next resistance levels lies at $43,000, $45,000, and $47,000. However, if the Bitcoin price failed to cross above the 9-day and 21-day MAs; we may see a price cut to break below the channel at $30,000 vital support. Therefore, a further low drive could send the price to $28,000, $26,000, and $24,000 supports. For now, the Relative Strength Index (14) is moving above 40-level, suggesting more bullish signals into the market.

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BTC/USD Medium-Term Trend: Ranging (4H Chart)

Looking at the chart, BTC/USD is clearly facing a lot of resistance near the $36,700 and $36,800 levels. A successful close above the $37,000 level is a must for bullish acceleration. If not, there is a risk of a downside extension below the $35,000 support. If there is a downward move, initial support is near the $34,000 level and the main support is near the $32,000 level, below which there is a risk of another decline towards $30,000.

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BTCUSD – 4 Hour Chart

Furthermore, if there are more gains, the $36,500 level is likely to act as a major hurdle in the near term for Bitcoin. So if there is an upside break above the $37,000 resistance, the next stop for the bulls may perhaps be near the $40,000 and above as the Relative Strength Index (14) is likely to move above 60-level, which indicates that additional bullish trends may come into play.

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TA: Bitcoin Extends Losses, Why $30K Holds The Key For Next Wave

TA: Bitcoin Extends Losses, Why $30K Holds The Key For Next Wave

Bitcoin price extended its decline below the $33,000 support zone against the US Dollar. BTC is currently recovering and it must stay above $30,000 to avoid a larger decline.

  • Bitcoin extended its decline below the $33,500 and $33,000 support levels.
  • The price is currently well below $35,000 and the 100 hourly simple moving average.
  • There is a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh decline if there is a break below $32,300 and $32,000.

Bitcoin Price is Under Pressure

Bitcoin remained in a bearish zone below the $35,500 support zone and extended its decline. BTC broke the $33,500 support level and settled below the 100 hourly simple moving average.

The price even declined below the $32,000 support zone. A low was formed near $31,065 before the price started an upside correction. There was a break above the $32,000 and $32,500 levels. The price climbed above the 23.6% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low.

However, the price is facing a strong resistance near the $34,000 level. It seems like the 50% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low is acting as a hurdle.

Bitcoin Price

Bitcoin Price

Source: BTCUSD on TradingView.com

There is also a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair. The first major resistance is near the $33,500 level. The main resistance is near the $34,000 zone, above which the price could test the 100 hourly simple moving average.

More Losses in BTC?

If bitcoin fails to clear the $34,000 resistance, it could continue to move down. An initial support on the downside is near the $32,500 level.

The first major support is near the $32,300 level and the channel trend line. If there is a downside break below the channel support, the price could dive to $31,000. The main support is near the $30,000 level. If the bulls fail to protect the $30,000 support zone, there is a risk of a sharp decline.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $32,300, followed by $31,000.

Major Resistance Levels – $33,500, $34,000 and $35,000.

Source