There are plenty of discussions in the cryptocurrency news which point to the next price trajectory for the dominant cryptocurrency. In short, the BTC traders discuss the Bitcoin price this week and whether it could hit $8,000 next or reach $12,000 in a bullish run.
The key macro indicators are obviously in play, helping analysts predict the outcome of the next BTC price movement. While we can see that the coin is still struggling to break out above the $10,000 mark and has difficulties after its drop today, traders remain mixed on the short-term price trend of BTC and the macro indicators suggest a lot of varying trends.
Slight wick now, which is fine.
If we break $10,000, next level is $10,500.
If we break $10,500, next level is $11,500-12,000.
Crucial level to hold; $9,100-9,300.
— Crypto Michaël (@CryptoMichNL) June 10, 2020
In fact, the three failed attempts for BTC to clear $10,000 speak for themselves – which is why traders believe that the price of Bitcoin is still not stable. Some predict that it is primed for a rally and others think that the Bitcoin price this week is only leading to a further drop to $8,000 or even $6,000 to $7,000 according to some analysts.
Historical data, on the other hand, suggests that the declining volatility and volume suggest a large Bitcoin price movement will probably occur in the near term. For example, the price of Bitcoin (BTC) in early September 2019 was hovering near the $10,500 and $10,800 levels. At the same time, the BTC futures and spot markets volumes declined and by the end of October 2019, the price dropped from $10,800 to $7,300 which showed a 32% pullback within two months after weeks of low volatility for the coin.
Anyways, the bullish scenario for the Bitcoin price this week paints a picture of an upsurge in the near term due to three main reasons:
- The compelling technical structure of BTC
- The increase in the number of long-term holders observing the Bitcoin price this week
- The rapidly growing hash rate
Unlike this scenario, the bearish scenario for the Bitcoin price in the short term mainly revolves around the rejection of Bitcoin at the $10,000 level. In this case, the price of Bitcoin should surpass a resistance or support level at its third test. When it fails doing so, it becomes vulnerable to a steep pullback.
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