As a result of the fluctuating pricing of Bitcoin (BTC) in the market over the past few months, crypto traders and investors alike are keen to determine the direction in which the flagship digital asset will move.
Speaking with Kitco News on August 16, Kevin Wadsworth and Patrick Karim, technical analysts of Northstar & Badcharts, discussed their next price targets for Bitcoin.
Giving an outlook on Bitcoin after the cryptocurrency hit the target of the $20,000 mark he outlined, Wadsworth indicated with percentages that Bitcoin could fall as low as $10,000 based on technical analysis.
“Looking at the Bitcoin chart we find ourselves in an inverted arc, the opposite of a cup pattern. We have been rising in a bit of a bounce off that $20,000 area and it’s taken us up and formed a bearish rising wedge-hitting resistance.”
In particular, he added:
“There are a number of technical analysis techniques and features of this chart that make it more probable it’s going to break to the downside and head down towards that $10,000 – $12,000 target. I would assess the odds at around about 70% to 80% likely that we break down to see these lower lows and about 20% to 30% probability of moving to the upside.”
A Bitcoin move to the upside is not ruled out
It is also important to note that Wadsworth states that “we can’t rule out that move to the upside,” but knowing where Bitcoin’s support and resistance levels are located, gives investors a heads up.
Elaborating more on the potential price target, the arc patterns indicate Wadsworth noted BitcoOn is heading in the direction of the 30-week or 200-day moving average, which are both very similar on this, he opined:
“That’s somewhere just above $30,000 – $33 000 that kind of area by the time we move up to meet it, I guess we could be somewhere around $29,000 or $30,000. So that is the upside target and that’s the highest I would expect it to get. We may well start to run out of momentum before then.”
The market analyst seemingly noticed quite a few of the cryptocurrencies are already losing momentum and appear to put in their highs for what he calls “a bear market rally,” Wadsworth added, “we’re either at or very close to those um those peaks at the moment.”
Bitcoin hopium headlines
With the ‘hopium’ headlines in the market with the likes of Mike Novogratz saying Bitcoin will eventually one day reach $500,000 and Anthony Scaramucci saying that if it goes to $300,000 why does it matter if you buy a $20,000 or $60,000, it appears many large institutional investors are still bullish long term.
Discussing the charts and the long-term projections the investors mentioned above had made, the technical analysts are not looking past $30,000 as a medium-term price target.
Given that Bitcoin is correlating heavily with the Nasdaq chart, Karim indicated that “it’s very hard to see higher targets for Bitcoin.” The two analysts agree cryptocurrencies and Bitcoin are a play on tech stocks. This is owing, in part, to the fact that cryptocurrencies haven’t been around for a very long period.
As a result, it’s difficult to anticipate how they will react, if, and when the stock market will embark on a much longer and more significant downturn.
Watch the video: Bitcoin’s chart suggests it could head as low as $10,000
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