BITCOIN - ARE WE REALLY GOING TO $8,500? SIMPLE SUPPLY & DEMAND.
Recently, in the market, we have faced a lot of FUD (Fear, Uncertainty, and Doubt), not only has there been plenty of news but almost all people are predicting a low of the bottom for Bitcoin at the $8,500 range. Now, this has been proven to be the upcoming outcome of the price in the short-term future as most the TA (Technical Analysis), proves that is going to be the case. However, we have to take into account market fundamentals, even if the price was to slip to $8,500 it would instantly be bought up and would be very unlikely to remain there longer than a few days. There is already enormous buying pressure at the $9,500 - $10,000 mark and that is acting as a huge support, consequently, holding the price where it is currently at.
Now, in the case of the TA, the price will consolidate between the primary resistance and support lines, depending on which one is broken the price will follow pursuit. I expect that the price is going to break through the first resistance and head onto the second one, where we will see a period of consolidation as this is a supply zone (more people selling then buying), if we can sustain the momentum here we could be a retracement back to $15,000 levels. In the worse case scenario, if both support is broken then yes, we could potentially see a short and quick drop to the $8,500 range.
Now, in the case of the TA, the price will consolidate between the primary resistance and support lines, depending on which one is broken the price will follow pursuit. I expect that the price is going to break through the first resistance and head onto the second one, where we will see a period of consolidation as this is a supply zone (more people selling then buying), if we can sustain the momentum here we could be a retracement back to $15,000 levels. In the worse case scenario, if both support is broken then yes, we could potentially see a short and quick drop to the $8,500 range.
- MACD - Not added to this analysis as on the timescale it was not showing any relevant indications that you want to take into consideration.
- RSI - Not added to this analysis as on the timescale it was not showing any relevant indications that you want to take into consideration, however, it was nor oversold or overbought but was still circulating in the higher section which usually is a bit bearish.
- Orange - Resistance.
- Pink - Support.