Bitcoin Is Primed to Correct to $10,700 Before Its Next Leg Higher

  • Bitcoin has grown strongly in the past few weeks.
  • The leading cryptocurrency rose from $ 10,400 to $ 11,750.
  • The coin trades at $ 11,400 after a slight correction as buying pressure eased.
  • Bitcoin is poised to go down in the short term as analysts say it is set to add another leg to this ongoing rally.
  • Crypto analysts believe this is the case, as do analysts at JP Morgan.

Bitcoin is prepared to move down ahead of the rally

Bitcoin is likely to decline towards $ 10,700 after the strong rally of $ 1,000 in the past 10 days. A crypto asset trader recently shared the graph below, which shows the cryptocurrency is consolidating after a sharp surge.

The analyst thinks This latest price action is preparing for a move towards $ 10,700, where there is a crucial moving average, the 0.5 Fibonacci retracement and the control point on BTC's volume profile over the past seven weeks.

Chart of the price development of BTC over the last few weeks with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter). Source: BTCUSD by TradingView.com

Not the only one who thinks that way

This trader isn't the only one who believes Bitcoin is ready for correction. A team of JP Morgan analysts recently stated that the cryptocurrency could be lower as its intrinsic value falls short of its true market value. The company derives the intrinsic value of Bitcoin from mining metrics, namely production costs:

"The JPMorgan strategists said they calculated intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production."

JPMorgan strategists See

Chart of the price development of BTC since early 2017 with an instrumental value analysis by JP Morgan analysts.

Another crypto asset analyst said Bitcoin formed a "Demell 9" Tom Demark Sequential candle on its daily chart. This suggests that a bearish reversal is imminent, as “9” candles are often seen when an asset reaches a tipping point in its trend.

The same analyst noted that bearish gaps are forming between the price of Bitcoin on its four-hour chart and the MACD and RSI levels. The RSI and the MACD are two important technical indicators that indicate the trend and development of an asset.

image

Diagram of the price development of BTC since the end of August with analysis by the crypto trader CryptoHamster (@Cryptohamsterio on Twitter).
Source: BTCUSD from TradingView.com
Photo of Paweł Czerwiński on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Diagrams of TradingView.com
Bitcoin is poised to correct to $ 10,700 before the next leg is higher





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