The price of Bitcoin dropped by 5.5% in the previous session, breaking below the $9,000 mark until $8,800. This movement is aligned with our prediction for a significant BTC decline.
Uncertainty remains high on the market, as there have been no additional news and factors to point up or down. That said, it’s more important than ever to understand how market manipulators operate and how they might influence the price of BTC in the nearest future.
Since mid-March, speculators have been opening long positions, which pushed the price up. In the last two weeks, those players have taken their profits at $10,000, securing gains that range from 100% to 150%.
At this moment, these players are waiting for attractive buy levels to re-enter the market. Needless to say, this won’t happen overnight. Bitcoin will likely continue to fall in the weeks ahead, until speculators decide it’s time to get back into the game.
With the fundamental picture out of the way, let’s get to the technical side of the story. As we’ve recently outlined, the upward triangle was a misleading sign of potential growth. Today, the RSI, Stochastic, and MACD are all standing near the oversold zone. As for the Bollinger Bands, the price has broken the lower band in the 4-hour timeframe. This dynamic points to a possible rebound to the $9,300 — $9,400 range in the next few days. You could take advantage of this short-term opportunity.
For middle-term investors, the target remains at $8,000 for opening long positions. Taking into account the fundamental and technical pictures, the likelihood of an extension to the downside is high.
A global drop in the altcoin market has been avoided, for now. Many of the coins have already lost between 3% -5% against the dollar, while the dominance coefficient remains nearly unchanged.
At this moment, it’s worth paying attention to Bitcoin Cash (BCH), currently trading around the $226 price level. A pattern is forming for this coin, and we expect it to sink 10% to 20% in the coming sessions. Once BCH penetrates the $200- $205 range, opening long positions might be a good option.