Bitcoin bulls have been quick to tout a “recovery” of the price, which is down around 20% from a $10,000 normal range it had held for several moons.
The price went as low as $7,688 in a recent bear attack, but some traders warn it could get bloodier from here, with a deeper bottom clearly in sight.
There is a reason why I haven't been on Twitter in a week.
This is just not worth commentating about.
As soon as we get a close above red or below green the small time frame will get interesting.
Close below $9000, I'll target $7500-
Close above $12000, Ill target $14000+ pic.twitter.com/HgRxtlE249
— DonAlt (@CryptoDonAlt) September 17, 2019
Oversold Market Threatens Lower Lows
Market conditions are clearly oversold at this point, which creates a danger of a further reversal in positive trends for BTC soon, say some experts.
7700 hit and bounced a little.
I'm still not convinced that we've bottomed.
Just looks like consolidation after a big drop.
Bulls have to prove themselves here by closing back above 8750.
Until then this looks like poo. pic.twitter.com/jkJPKafxf8
— DonAlt (@CryptoDonAlt) September 30, 2019
Some traders had previously jumped at the chance of calling the drop in Bitcoin price a “dip,” but now things seem to have ironed out and settled at the current levels. As this trader noted, the $8,000 range currently seems comfortable for Bitcoin markets.
$BTC seems to have found a support that it likes at $8k
Will continue to watch order books & how price reacts up at $8750-$8800 if it makes it up there
Expect more down but sideways is expected after a violent dump
Would flip more bullish with a close above $8,800 pic.twitter.com/w8eZK58jP5
— Josh Rager 📈 (@Josh_Rager) September 30, 2019
Bakkt and CME Bitcoin futures have failed to ignite the passions of the crypto trading community, and a bull run seems out of mind at this point. Instead, in a manner of speaking, people seem to be strategizing and pruning their crypto holdings.
Is Institutionalization Another Form of Risky Centralization?
Then large-scale movements have been taking place, indicating either institutional or other large holders have either lost hope of getting back to $20,000 or have a tax strategy that involves liquidating Bitcoin.
Indeed, sell pressure will be high during the month of October, as some traders use legal wash trading tactics as part of their tax strategy.
For whatever it might be worth, although this isn’t financial advice, the near-term future of Bitcoin trading seems to be an opportunity to acquire BTC at a slight discount. How long this window will last is anyone’s guess.
The last breakout coincided with awful news for Bitfinex and Tether Limited, but the next might be on much more important news, such as the eventual approval of a Bitcoin ETF offering.