For those few people who still doubted the situation, things are not looking all that great for the Bitcoin price right now. Late last week, it seemed as if $10,000 per BTC would effectively be achievable bar some resistance. Sadly, things have taken a turn for the worse, as the Bitcoin price dipped to $9,055 once again. A bleak outlook for the world’s leading cryptocurrency, but things can still turn around.
BITCOIN PRICE STRUGGLES WORSEN
It has become rather apparent we will not see a new Bitcoin price all-time anytime soon. In fact, that new all-time high seems further away every single day, as things continue to look bleaker every week. As of right now, the biggest concern is whether or not the Bitcoin price can still above $9,000, albeit it seems the world’s leading cryptocurrency is fighting a losing battle on that end.
More specifically, the Bitcoin price took a nasty stumble this morning and it has not recovered in the slightest. With the value dropping from $9,800 all the way to $9,200 in three hours, it is evident the volatility is returning in full force. Things got even worse when the value dipped to $8,973, even thought hat dip was bought pretty quickly. Right now, it seems dipping below $9,000 will happen pretty soon, although it may not necessarily happen as of today.
Whether or not things will improve for the Bitcoin price, remains to be determined. The most recent 8% price drop has a lot of investors spooked yet again, and it seems there may be even bigger losses on the horizon. Assuming this downtrend continues, we may very well see a Bitcoin price closer to $8,000 rather than $10,000 before this day is over.
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Bitcoin Price Technical Analysis for 02/22/2018 – Potential Bounce Targets</h1>
Bitcoin Price Key Highlights
- Bitcoin price is still in correction mode but appears to be bouncing off the trend line support.
- Applying the Fibonacci extension tool shows how high price could go if the trend line holds.
- Technical indicators are signaling that the uptrend is about to resume.
Bitcoin price is finding support at the area of interest on the trend line, 200 SMA, and $10,000 mark so the rally might resume from here.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA on this time frame so the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. Also, the 200 SMA lines up with the rising trend line connecting the latest lows.
Stochastic is pulling up from oversold levels to signal that bullish pressure is returning. Similarly, RSI is also turning higher to show that buyers are ready to jump back in.
A bit of bullish divergence can be seen on stochastic as the oscillator formed higher lows while price had lower lows. A bounce could take bitcoin price up to the 38.2% extension around $11,000 or the 50% extension at the swing highs.
The 61.8% extension is located at $12,000 or another long-term area of interest. The 76.4% extension is at $12,788 then the full extension is at $13,590.
The US dollar enjoyed another wave higher on hawkish FOMC minutes and risk aversion. Policymakers agreed that stronger growth momentum could warrant further tightening in the months ahead.
This led to higher bond yields and another weak close for US equities as business and consumer activity could be dampened by higher interest rates. Note that bitcoin price has been trading alongside stocks and commodities, so the dip also affected the cryptocurrency.
Nonetheless, it’s still worth noting that bitcoin sentiment has improved after a few nations have expressed the need to keep the door open for industry developments. Then again, some top financial officials have made negative remarks on bitcoin, particularly on its ability to be a store of value.
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Even though Bitcoin still has nearly $6.75bn in 24-hour trading volume, the bears have taken control of the market yet again. It is not the first time this year we see these bearish trends materialize out of the blue, nor will it be the last either. The current cryptocurrency market seems destined to remain bearish for quite some time to come, even though all of these valuations may very well explode sooner rather than later.
As of right now, Bitfinex is the largest exchange by Bitcoin trading volume. They are followed by Binance and OKEx, both of which have USDT markets. bitFlyer and Bithumb complete the top five, giving us an interesting mix of USD, JPY, KRW, and USDT trading altogether. Unfortunately, it seems none of these markets are effectively capable of stemming the negative Bitcoin price tide right now, but it remains to be seen how things play out in this regard.
Anyone who wants the Bitcoin price to succeed may want to look away from the charts for quite some to come. This current downtrend is far from over, as it has controlled the market for nearly three full months now. Whether or not this situation an even be reversed, is a tough question to answer as of right now. Anything is possible in the world of cryptocurrency, but this current trend doesn’t look all that appealing to investors whatsoever.