Market Update: Bitcoin Fails to Trade Above $12,000, Analysts Predict Dump to $9k

Novogratz: Billionaire Upset at Bitcoin’s Downward Price Swing Wishing He Sold “a lot” more

Bitcoin may have recovered and traded above $11,200 which depicted a bullish signal, however, some cryptocurrency analysts are still expecting a significant dump in price.

An instance is Tone Vays who in a tweet on July 5, 2019, said Bitcoin is yet to surge past a Resistance zone of $12,250 – $12,500, therefore, there is no change in a bullish trend.

Bitcoin Fails to Trade Above $12,000 After Recording Year-to-Date High

As at press time, Bitcoin is trading at $11,569 which is 2.63% increment in its price within the past 24 hours. A look at CoinMarketCap’s chart reveals that the virtual asset had traded as low as $10,874 some hours ago before reclining upwards. Bitcoin has also not revisited its $13,000 price level which is its year-to-date high.

The cryptocurrency community have taken a look at these price movements and come to a conclusion. For instance, Tone Vays, a Derivatives trader opined that Bitcoin has never gone above the resistance level he had previously said will mark the set-off of a bullish trend. 

Resistance Zone of $12,250-12,500 Has Not Been Revisited

The resistance level, according to Vays, is between $12,250-12,500 and as such, Bitcoin’s inability to revisit these zones means that there is “no bullish trend change”. He has, therefore, come to the conclusion that Bitcoin may possibly decline back to $9,000 or even further to the $5,000 to $6,000 level. According to Vays, these levels will present a buying opportunity for him.

Another analyst, Sawcruhteez has also noted that a bearish crossover between the 9-Day EMA (Exponential Moving Average) and 50-Day EMA’s presents a potential bearish crossover. He also supported his bearish stance by outlining that Bitcoin has been setting lower-lows and lower-highs which goes contrary to the characteristics of a bull market.

Despite Current Signals, Bitcoin’s Overall Momentum is Bullish

However, Sawcruhteez has warned against temporarily supporting Bitcoin because other than what the current signals are pointing out, the overall momentum of the virtual asset is bullish. In a video, he said: “Not liking to short Bitcoin in the bull markets, but I will short in bull markets a very very small percentage of the time. About 5-10% of my trades can be short. I am not overdoing it.”

If one goes by Sawcruhteez, it can be said that these analysts expect a surge in Bitcoin’s price in the long run, but in the near term, are eyeing a significant decline in price. While hinting on where he sees Bitcoin devaluing, Sawcruhteez hinted that it may be as low as $6200.

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