To say bitcoin has been volatile over the past few weeks would be a gross understatement. Earlier this month, the top crypto surged to almost $10.5K before quickly dropping to as little as $8,600. Again on Wednesday, BTC saw another large upside move as it attempted to break past $10,000.
Unfortunately, the bears are having a field day today. The bitcoin price has plunged from around $9,900 to $9,300 in a matter of hours. The crypto is valued at $9,365.00 at the time of publication.
The drop in prices has been seen across the board as the traditional markets take a tumble as well. The Dow Jones Industrial Average (Wall Street’s equity index), for instance, fell by around 1000 points on opening as investors internalized Fed’s gloomy economic outlook from yesterday.
Here is what analysts are saying could come next for the bitcoin price.
Watch Out For A Drop Lower
Quantum Economics founder Mati Greenspan set the tone on crypto Twitter, indicating clearly what’s at stake for the bitcoin price. Greenspan noted that BTC is now clinging to a key trendline as support. Should the yellow trendline he illustrates in the chart below fail to hold, Greenspan expects the price to drop to as low as $8,000.
On the flip side, he states that BTC could easily surge to $10,000 by the end of the day if and only if the bulls are able to defend the support.
#Bitcoin now testing the yellow trendline as support. If she doesn’t hold then next support likely comes at the blue line (200 DMA) or approximately $8,000.
If the yellow line holds, we should see it back at $10k, quite possibly by EOD.
pic.twitter.com/MWBnNjzzIm
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) June 11, 2020
Notably, pseudonymous analyst Credible Crypto shares Greenspan’s view. In a tweet a few hours before the crash, the analyst observed that bitcoin’s drop below $9,800 would lead to testing the $9,200 level as support. This level has cushioned BTC’s multiple rejections at the $10K region. But failure to hold $9.2k and we see $8,800 next.
After fending off the bears, Credible Crypto sees BTC shattering $10,500 on its way to $14,000.
The “bearish” scenario. If 9.8k fails here, might be time to complete the final leg of this flat. Will also likely be the last time you will get a chance to buy sub 10k for a while because after this flat completes we should FINALLY take out 10.5k and push onwards to 14k+. $BTC pic.twitter.com/0twc4Q1fRh
— Credible Crypto (@CredibleCrypto) June 11, 2020
Crypto DonAlt is not so bullish. The analyst explained that he is seeing several comments from traders who think that BTC is unlikely to drop below support because “that’d be too big a drop”. He basically stated that such comments are wildly incorrect as that is not how the bitcoin price works. According to him, a 40 percent drop from here is very possible given it has happened in the past.
Other Analysts Offer More Bullish Outlooks
While a retrace in the bitcoin market is not good news for long-term holders, some analysts maintain their unwavering bullish takes.
Popular analyst Scott Melker, aka Wolf Of All Streets, believes bitcoin’s chart looks ugly at the moment but he has taken a long position anyway because he sees “a ton of upside” if the top coin reverses.
Furthermore, Morgan Creek co-founder Jason Williams has suggested that the dip in the bitcoin price is a nice buying opportunity. “I am about to buy a bag of bitcoin”, Williams stated.
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