Cryptocurrency market update: Top analyst not convinced with Bitcoin recovery; BTC downside shifting to $6,000
- Bitcoin’s graceful correction above $10,700 revived investors’ hopes of breaking the psychological level at $11,000.
- Cryptocurrency analysts foresee a downtrend despite Bitcoin having a short-term bullish picture.
Bitcoin led the cryptocurrency market in a phenomenon recovery phase from the lows recorded in the last week of August. Bitcoin’s graceful correction above $10,700 revived investors’ hopes of seeing the oldest cryptocurrency above the psychological level at $11,000. However, BTC hit pause slightly below $10,800 and retreated to $10,500. At press time, Bitcoin price is teetering at $10,550 after a subtle 0.78% drop on the day.
Although Bitcoin’s short-term trend paints a positive picture, a number of analysts with huge followings on Twitter are advising investors to continue with caution. For example, Johnny Moe says that Bitcoin’s downside if moving. The consolidation witnessed in the last two months suggests a potential massive drop to lows around $6,000.
“Update: Still anticipating a return to the parabolic trend. Previously had ~$5,500 on this chart, assuming a quicker return to mean. Since we’ve consolidated sideways for about 2 months, the downside is more like $6,000 now.
Another analyst, Crypto Cred outlines that the terrific move above $10,000 (broken support) did not offer any sort of resistance. He interprets the lack of resistance to be a bear trap and saying bearish continuation is very likely.
“$10,000 level that was broken support failed to provide resistance when retested. This is usually evidence of a trap (bearish continuation sellers on the S/R flip caught offside).
HTF directional bias favors upside, clearing $10,460s (intraday range high) would cement that.”