Crypto analysts predicted that the bears had been winded when BTC price flatlined at $6,500 in mid-October. This followed a downturn that persisted for close to a year, and they believed that it is primed for a rally this December.
Bitcoin (BTC) Price Today – BTC / USD
Trader and technical analyst, Willy Woo, predicts that this currency’s bad days are far from over. He believes that it will still have a shaky short-term price.
Woo took to Twitter to say that he doesn’t expect the digital currency’s price to rise until after the second quarter of next year. This means that the market may face another few months of downward pressure before anything improves.
The reason for his prediction
Experts have cited fundamental indicators like the entrance of some high profile bodies into the crypto ecosystem. They also talked about short-term bulls that pointed to a lot of technical data points justifying their optimistic outlook which include a marked increase in the transaction rate of BTC as well as a steady daily trading volume. Woo says that several proprietary technical indicators paint a darker picture in the short term.
He noted that NVTS, or bitcoin network valuation which is divided by the transaction value has dropped below the support level. This is a classic sell sign. He also says that Bitcoin Network Momentum hasn’t ramped up which is usually the case before a bull cycle.
This doesn’t mean the price of BTC doesn’t have a chance to rise in the short term; Woo believes that it not likely for it to break above the 200-Day Moving Average since the moves have historically implied a shift from the bear market to bull.
“If price (in the short term) bounces upwards here, which is certainly possible, I think the 200-day moving average is the upper band of the move. This is ~$7k right now… Remember if price goes above the 200DMA, in the history of BTCUSD’s 8 year trade history, it’s been a reliable indicator of bear to bull transitions. It’s too early to transition out of the bear.
Bitcoin price analysis
Currently. The digital currency is being traded at $6,489. It is also moving within the correction. Comparing it with altcoins, it has lost just one percent since the week started. There is good news in the cryptosphere as more brands are accepting payment with BTC. When the market is more stable, there is a higher likelihood of the return of the large service providers mainly in the digital segment.
The forecast for the day shows that price can attempt to go beyond the narrow accumulation. It may test the resistance zone. Presently, there has been a small update of the recent highs at $6,481 to $6,470. Before going higher, BTC price may go back to the area on the signal lines of $6,449.
In another case, it could drop to the support area and then update the recent lows around the $6,397 – $6,360 area.