Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
Given the range of the daily Relative Strength Index, Bitcoin may continue sliding downwards within the falling channel.
Since Bitcoin is picking up footing in the prevailing press, numerous doubters and business analysts have guaranteed that the crypto space takes after the Dot-com blast and downturn in the early years.
Bitcoin is exchanging simply above $7,000, 70% lower than its ATH while reliably recording BTC strength at 70%. As indicated by an exhaustive investigation, the long term Bitcoin could drop to $1,000 which shows comparative examples for the NASDAQ dot-com bubble. A bounce-back can give a reprieve, yet financial specialists ought to be careful about an ensuing decay.
Nonetheless, one expert sees the case for this isn’t probably going to be the situation precisely, taking note that the case with BTC is different from the tech stock.
One of Bitcoin’s faultfinders known for the end of the world expectations sought the main digital currency. He accepts that the specialized picture incorporates sharp sellings to about $1,000.
Although if the crypto enthusiast is correct, at that point the price is currently trying the neck area, and continued development underneath this hindrance could trigger sharp sells beneath the MA (moving average) 5 and 13 on the daily at $7000. This support is intently trailed by a $6850 psychological handle. When the track has run out, $5,000 may turn into a probability with the following level support territory as a target just beneath this hindrance.
On the drawback, we should see the continued development of the level at $7,600 on this handle to calm the descending weight. This opposition is produced by MA 5 and 13 on the daily and the previously mentioned neck area. The following obstacle comes at $7,800 and $8,000.
When discussing momentary price development, as indicated by the most recent momentum, if Bitcoins neglects to keep up the $7,000 level, it will drop further and may reach underneath the $5,000 level. Concerning the long term, the forecast of Bitcoin may likewise diminish to the price level of $1000 or less. Likewise, when contrasted with the dot-com bubble scenario, this sort of market design winds up bad.
BTC/USD Is Trading below Barrier Levels with Lackluster Momentum
Supply Levels: $7,000, $6,500, $5000
Demand Levels: $8,000, $7,800, $7,300
Meanwhile, at the time of writing this report, BTC/USD is changing marginally above the price level of $7000, and this area is the lower bound of the recent consolidation pattern, reinforced by the lower line of the moving average 5 and 13. Once it is broken, it is likely the selling process acquires traction with the following focus on $6500.
However, given the range of the daily RSI (Relative Strength Index) on the daily chart, the digital currency may continue sliding downwards within the falling channel and likely contained by the level at $6500 on the downside.
On the upside, BTC/USD is required to record sustained above-level recovery at $7,300 for bull momentum to gain traction. The next bullish target is situated at $8,000 with the horizontal resistance area and the (Moving Average) remaining on the daily above this area.