Over the last few days, Bitcoin (BTC) moved up with almost no reason. The sporadic action in price led to bouts of volatility that saw Bitcoin rise more than 7 percent and a surge of 30 percent in Litecoin price that makes it hard to predict where exactly the cryptocurrency prices will go from here.
as always, sideways PA after a big move usually results in trend continuation.
— BenjaminBlunts (@SmartContracter) February 9, 2019
In the light of the price action, market analyst and trader, Benjamin Blunts took to Twitter to share that the upward trend could continue and break above $3,730 price level before Bitcoin go for any “significant pullbacks.”
“As always, sideways PA after a big move usually results in trend continuation. im anticipating break above local highs at 3730 before only then will i be looking for any significant pullbacks.”
However, at the time of writing, Bitcoin has been trading at $3,654 with a loss of 0.43 percent. The market today has yet again turned red with top cryptocurrencies down between the range of 1 to 2 percent.
Top Cryptocurrencies, Source: Coinmarketcap
Meanwhile, recently, Mati Greenspan, senior analyst at eToro appeared in CoinTelegraphs’ crypto market assessment of Bitcoin going below $3,000.
Greenspan shared that there are two main levels of support, as far as Bitcoin is concerned, which is at $3,000 and about $5,500. The $5,500 level was broken down in December which has the historical relevance as this level held up the price during the bull run in February. When massiv drop came, this kind of acted as a support level as well.
The another key support level according to Greenspan is the one we are testing right now, that is $3k. This historical level was also tested during the bull run.
It took about two months of 2017 to pass through this level and once it did pass through it, Bitcoin price tested it as a support before carrying on towards the moon. And now we are testing that level of support once again.
Talking about the descending triangle which is a very bearish pattern, he illustrates, “Here we have a psychological level of support and a more natural resistance.” The last time Bitcoin came here, Bitcoin hit the downside.
However, he does cautions that “past performance does not recognise the future results,” what we can do is look in the past and determine a pattern. This would give us a with picture of what is to happen and what is less likely to.
Despite being a bearish pattern, he said, we can break in a uptrend which was exactly what happened in the past couple of days as market saw more than 5 to 10 percent surge in crypto prices.
Currently, according to Greenspan, we are having a disconnect between the technicals and fundamentals as transaction rate of bitcoin is at a 12-month high and TPS rose steadily during the bear market. Another important factor is the real use case of bitcoin, which is the markets that need it the most, which is rising steadily as well, while the technical charts, he says “look pretty bearish.”
According to him, if it does break down below $3k, it won’t be a problem, as it will find support at $1,800 and 1,300 that have played significant role in the past. Further noting that prominent market analysts are going with the current time being an accumulation one and if buying the dip, this place is just to do that.