The Bitcoin price (BTC) has failed to break the multi-year resistance of $10,500 since early June 2020. This prolonged period will eventually result in one of two inevitable outcomes.
Either a huge green candle that will take bearish traders by surprise, or a profit-taking period in which the price of Bitcoin, the leading digital cryptomone, will fall to levels below $8,000 in the coming weeks.
According to Coinmarketcap, Bitcoin’s market cap is currently USD 166,379,736,731.
Be sure to read: Bitcoin Forecast: What will be the price of bitcoin in 2020 according to the experts?
Daily crypto market performance
The „weak“ MACD
Using the Moving Average Convergence of Divergence (MACD) indicator, which has historically proven to be incredibly accurate for buying and selling Bitcoin on the weekly chart, you can see that the blue MACD line is starting to point towards the orange signal line.
Each time the weekly MACD does this, it signals investors and traders to sell or lock in short positions. In the history of Bitcoin’s early days, both bullish MACD crosses (when the blue MACD line crosses up through the orange signal line) and bearish MACD crosses (what we’re seeing now) were rare: they occurred once a year, perhaps twice.
However, in the last 18 months, they crossed paths nine times, i.e. once every two months on average since the beginning of the 2018 bear market.
The last time the Bitcoin price crossed the bear market in the MACD there was a huge 57% drop in the Bitcoin price almost immediately after that crossing. So, are we prepared for another setback? According to Fibonacci levels, this could bring the price of Bitcoin down to $7,916 – $3,850.
On the daily chart, things are not much clearer. It is clear that $10,400 is the resistance and $8,800 is the support for the Bitcoin price. How long this range will continue is a mere guess.
However, the last time the Bitcoin price broke this level, the price shot up by 32.2% more, at which point USD 10,400 became support several times before eventually continuing its downward trend.
At this point, the Cryptosoft price is dangerously close to the support level, which happens to be 236 Fibonacci. The loss of this level opens up $7,900 as the first downward target.
If the bulls take control and pass the $10,400 resistance level, the increase in the current Bitcoin price from $9,040 would be a staggering 56%. It would be a pretty good situation if it can be achieved, but you need to wait for confirmation first, and this could take not weeks, but months to accomplish.