Bitcoin’s recent price performance has provided little inspiration lately. An ongoing range-bound bounce between the high $9k and mid-$10k price levels has not given any clear direction of future movements. Some analysts expect a breakdown to a new lower low while others remain bullish.
Bitcoin Order Book Looks Bullish
From its Monday high which touched $10,600, BTC has been on the back foot as the week as progressed. The slow slip down to today’s prices of around $10,150 has led many to predict a further fall back into four figures again. For the past day or so, bitcoin price has been oscillating between $10,200 and $10,000 in an ever-tightening channel according to Tradingview.com.
A pennant appears to have formed on this hourly time frame which is likely to lead to a breakout. Crypto analyst and trader Jacob Canfield is bullish in the short term, predicting an upside breakout within the next few hours. This extrapolation has been derived from looking at the order book which he claims is stacked to the upside.
“#Bitcoin trading has been like watching paint dry.
Paint drying bitcoin price action should probably be ending in about 4 hours or so.
I expect a resolution of this to come soon.
I’m personally leaning to the bullish side with the way the order books are stacked.”
#Bitcoin trading has been like watching paint dry.
Paint drying bitcoin price action should probably be ending in about 4 hours or so.
I expect a resolution of this to come soon.
I'm personally leaning to the bullish side with the way the order books are stacked. pic.twitter.com/gPmvv3uoon
— Jacob Canfield (@JacobCanfield) August 28, 2019
The short time-framed pennant is likely to reach its conclusion later today or early tomorrow. Over the past week, the lows have been higher which could be another sign of a bullish movement though not all are convinced.
Other traders are a little more indecisive on the next move but all are in agreement that something is about to happen soon. Price action trader ‘TheCryptoCactus’ pointed out;
“There is no reason that a move either way should surprise you and you should have had plenty of time to prepare for both scenarios. Chart looks daily bullish but I’m expecting wick down to trap shorts.”
While ‘WelsonTrader’, who has also identified the wedge formation, has gone for the bearish option predicting a slide to a new lower low back in the $8k zone before any sign of a recovery.
“When #Bitcoin inevitably breaks down from the wedge we’re in, I’m expecting $BTC to drop over 20%+ from the current price, and a total of 40%~”
When #Bitcoin inevitably breaks down from the wedge we're in, I'm expecting $BTC to drop over 20%+ from the current price, and a total of 40%~ from where I first shared short calls at 13.7k+ pic.twitter.com/sHcMrZaVFX
— WelsonTrader
(@WelsonTrader) August 28, 2019
Either way, a larger move is likely before the week is out but it remains to be seen whether bitcoin will stay within its trading range or drop to a new low confirming the correction is still in play.
Will BTC price drop to $8k before reclaiming $11k? Add your predictions in the comments below.
Images via Bitcoinist Image Library, BTC/USD charts by TradingView, Twitter: @JacobCanfield, @WelsonTrader