Bitcoin: When uncertainty sets in

  •   16/06/2020 - 11h11
  •   DEHOUI Lionel

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.

Trade Bitcoins online!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Bitcoin: When uncertainty sets in

The price of Bitcoin in range

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.

 

The two scenarios considered by analysts

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.

 

What do the experts think?

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.