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After last week’s correction below $8700 levels, Bitcoin price has entered a consolidation phase with next support at $8500. Despite the bearish signals, analysts remain confident of the long-term bull run.
After a poor drag down last week, the overall cryptocurrency market is showing signs of mild recovery today. While the crypto markets are eyeing a northward journey, Bitcoin still looks hesitant to take the lead.
Last week, Bitcoin took a hit as the BTC price first slipped below $9000 and later even below its crucial support at $8700. Now, at press time, Bitcoin is trading at $8641.61 with a market cap of $156 billion. While Bitcoin has been showing a mild response to the market recovery, some of the altcoins like VeChain, Tezos, and NEO are showing a good upward movement.
In the last three weeks, Bitcoin has shown less amount of volatility. This has led several crypto experts to believe that Bitcoin is creating a new base before the next bull run. But there are some mixed reactions as well in the market. Looking at last week’s BTC price movement, Tone Vays, former VP at JPMorgan told CCN that Bitcoin could probably see a further decline from these levels. He added:
“Assuming the price of Bitcoin does not move at all in the upcoming hours before the week ends, the current weekly candlestick would likely close near the lows. Under this scenario, the only thing that I would expect for next week is that Bitcoin is going to go lower”.
If we look at the Bitcoin price chart for the last week, we can see that BTC even slipped below $8500 levels momentarily. Vays says that this has increased the odds of a bearish impulse.
“If Bitcoin indeed goes lower next week, there is going to be reasonable support around $7,200. This price level is supported by the 50-week moving average and the 61.8% Fibonacci retracement level,” he added.
BTC’s Long-Term Bull Run Remains In Tact
Based on several technical indicators, analysts remain confident that Bitcoin and crypto market is still in the long-term uptrend. Crypto analyst Cow Jones cites the Ichimoku Cloud, a de-facto “all-in-one” indicator that shows long-term trends saying that Bitcoin is showing very bullish trends for the long run.
Charles Edwards, a digital asset manager pointed at the massive surge in BTC volumes during June this year. He added that this volume surge is followed by consolidation which we are seeing right now! In the future, he expects huge rallies to continue.
Massive volume in Bitcoin
Things are not as they may seem.
Shrinking Spot market volume has been more than compensated for.
Futures have swallowed the Spot market. BTC 90 day Volume was recently 40% more than the 2017/18 peak.
This has powerful implications. pic.twitter.com/LXRoF9NXoG
— Charles Edwards (@caprioleio) November 11, 2019
Another popular crypto analyst HornHaris noted that the BTC price movement is quite similar to the downtrends seen during the 2017 bull markets.
I still remember the exact moments of each of these stop runs on $BTC during 2017. Each turned out to be a turning point and end of a corrective period in the larger bull run.
I can't help but think we saw the exact same thing happen recently, just on the weekly chart. pic.twitter.com/0CVsr2C1mu
— HornHairs 🌊 (@CryptoHornHairs) November 16, 2019