Speculating on the price of Bitcoin is not always easy, especially at the end of a range. Despite the different indicators used, sometimes the trend is not predictable on the BTC/USD chart. Then, fear takes hold of analysts who project different situations.
For almost 6 months now, the evolution of the price of Bitcoin has shown no clear trend. The market moves in a range between USD 9,300 and USD 9,900. The question now is whether the cost will go up or down after its release.
Price volatility is a determining factor in the sale and purchase of Bitcoin. This volatility also affects other cryptomoney businesses, as Bitcoin dominates this market by more than 60%. It is then necessary to be able to predict the direction of costs. After this long period of consolidation, the graphs still do not give an indication that can anticipate a single movement. Different scenarios are thus possible at the end of the range.
Investors, crypto-traders and analysts agree that two situations are possible: bearish or bullish.
In case of "bearish", there will be a rejection of the price at 9,200 USD. This rejection will be followed by a reduction of the price down to 7,000 USD. As for the "bullish", it would imply that the price would be maintained above 9,200 USD followed by a test at the level of 10,500 USD.
Currently, Bitcoin is raising fears, and many investors see it as a "fear zone". Driven by fear, traders are becoming more vigilant about the direction of short-term costs.
The crypto-trader Pentahurdi who had been able to predict the decline of the BTC since February 2020 projects a "bearish" scenario for Bitcoin. It is based on the presence of a triple top which announces a reversal of the bearish trend on the BTC/USD chart. However, a drop to the 6,000 USD level is possible. The possibility of a range lock should also be considered.
The influence of J. P Morgan on costs
In the coming days, mining difficulties are likely to increase by 13%. This will encourage investors to sell. This will complicate a likely rise in the cost of Bitcoin.
After the "Black Thursday" that Bitcoin was able to overcome with a surprising V-shaped recovery exceeding $10,000 in less than 3 months, J.P Morgan appreciates it by speaking of "good holding" after this fall in costs. This support from such an influential man can push the price up to around $10,000 or at least mitigate the effects of a possible drop.
The good news
Bitcoin hasn't really put a smile on investors' faces since the beginning of this month. However, there are still two weeks left for it to turn the tide. A decline is to be considered in the analysis without neglecting a possible recovery towards the 10,000 USD in the short term.