Bitcoin (BTC) Price Major Update: $8000 or $11,000?
Bitcoin is now trading at $9700 and see a $1000 drop on Wednesday (19 Feb). Bitcoin is looking very bullish on charts before the drop happens and now the market sentiments are little bearish.
Let’s do a full Bitcoin price prediction on all time frames.
Bitcoin Price Prediction on Daily Chart
Bitcoin is taking strong support around the zone of $9300-$9400. The strong is supported by the previous rally of bitcoin and the price has bounced from these points many times. The 0.5 fib level is also on the same levels that make the support stronger and harder to break and High Volume Node on VPVR.
The golden cross ( the 50 Moving average crosses the 200 moving average in upside direction) happened on 19 Feb and after that Bitcoin suddenly records a drop of $1000 in just a few hours. We will explain the golden cross and price reaction later in this post.
The golden cross is known as the bullish event and will give traders a hint that the market will go up.
Bitcoin has breached the upside channel on the daily chart and in the next few days will test the trend channel line. There will be resistance at the trend line and this is the must hold point for Bitcoin.
If Bitcoin is unable to break the trend line and hold the $10,000 psychological point then we may again see the retest of $9300 zones.
Bitcoin Price Prediction on 4-Hour Chart
The 4-hour chart looks good for another upward movement. The price has tested the 200 EMA on the 4-hours chart for the first time since the parabolic movement has started in January.
The test of the 200 EMA left a nice long wick on the chart that shows the price rejection in the zone which is a good bullish sign. There is also a potential bull divergence on the RSI (Relative Strength Index).
Bitcoin Price Prediction on Weekly Chart
Bitcoin is moving in an upward channel on the weekly chart. The channel is looking very good. The price is now testing the bottom line of the upward channel. If the upward channel is broken downside then we may see a new bear market and the price will test the $8000 zones the possible formation of an asymmetric triangle.
Bitcoin Price should move above $10,000 to remain in the upward channel. The next week is very crucial for bitcoin and we see a good fight between the bulls and the bears.
Bitcoin Golden Cross and Death Cross History
Most of the day traders open a long position after the golden cross just happened or open a short position just after the death cross happened.
Let’s see what happened if you opened a long position on 19 Feb.
The price has dropped around 10% just after the golden cross, which means if anyone opened a long position with 10x or greater leverage will be liquidated on the next day. The market movers (whales) know that most of the people long after a golden cross so they just dumped the market.
You can see the same when a death cross has happened most people will open a short position. The death cross happened in Mid October and the price has seen a massive increment of 22% the next day, which means anyone opened a position with 5x or more was liquidated the next day.
We can see the same pattern on the previous golden cross and death cross.
The golden cross has happened on 21 April 2019 and the price has dropped around 12% the next day, again liquidating the long positions.
The golden cross has happened on 30 March 2018 and the price has moved 10% up in the next 4 days. The price has moved around 45% up within the month following the death cross.
So from the above history of the golden cross and death cross, there is no need for panic of the $1000 drop in price. The drop is for liquidating a lot of long positions. The market has not very high volume and it is easy for a group of people to manipulate the market to some extent and make money.
Conclusion
It’s all about holding the support of $9300-$9400. It’s a strong confluence of support and if Bitcoin breaks it we will see the price below $9000 just in a blink of an eye. However, it looks like a pullback for the golden cross which is a great buying opportunity and also keeps in mind the halving is now two months away.
