Short-Term Consolation in Price Action of Bitcoin – Trend Setting

The stock-to-flow metric for the Bitcoin is reported to follow a bullish trend.  However, to catch up with a positive sentiment, Bitcoin should stay strong and close above $8,800. We need to wait to see if a Bullish U-turn would happen. The one hour chart for XBT/USD reveals that the price levels were crashing through the asymmetrical triangle support.  There is not sufficient buying pressure, and the price of the Bitcoin might go down to $7,200.  The price action indicates a period of short-term consolation. Eventually, the price action is expected to trend sideways, causing the selling pressure to build up over again. Key support lines are noted at 7,400 and 7,150, causing the Bitcoin to regain upside momentum. Another dump is expected in the forthcoming days. Investors are scaling into and out of the market to avoid overtrading.  They are using sensible stop loss techniques. Some analysts are predicting a drop below $7,200. Trump is continuing to fuel trade hopes.  There are yet other analysts who are blaming BitMEX to have caused the said crash.  The firm has been blamed for having liquidated its long positions which were worth more than a billion-dollar. However, Bitcoin is expected to slip further as there is not sufficient institutional interest and investors are switching their positions on and off. Trump signaled that “the end of US-China trade war could happen sooner” than anyone could think of. This led to the rallying in the US stocks, and this hinted that there would be further growth during the Thursday session. The escalating trade war between China and the US-led to an increase in the price of the Bitcoin.  However, a realization that the tension is going to ease out is bringing the price down. When it was thought that the global economy was dwindling, analysts were treating Bitcoin as a safe-haven asset. It is now felt that investors might look elsewhere with the risks becoming less. However, some analysts state that the current price decline for Bitcoin has nothing to do with any macroeconomic event.  They feel that it is just a bearish correction after the 200% gain showed by cryptocurrency. One of the tweets talked that this was trendsetting:  “First time getting a chance to look at the $BTC chart since the dip.  Bruhh there wasn’t even a break out in volume, we’re still just consolidating here. Wake me up when we start trending again.”

Marjory Lewis

Marjory is a science graduate with interest in new technological innovations. She has been attracted to blockchain from the very beginning and covers bitcoin and blockchain news for Bitcoin Journal.

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