The recent price crash has been a highly discussed topic in the mainstream media. News outlets throwing potential scenarios right and left, touting readers to fear and panic instead of giving analyses about potential scenarios. Today, the cryptocurrency market is up in the past 24 hours by about 3% and recovered from the crash around USD 100 Billion. Why isn’t anyone covering such events?
Today we look closely at how Bitcoin might react in the short-term, and plan out two potential scenarios that might arise.
Bitcoin Price Prediction hitting a Bullseye
In a post published yesterday amid the chaos, we at CryptoTicker published an Analysis of what is happening with the price of Bitcoin, and predicted an area of price adjustment. Well, today we go back to the charts and see that everything went according to what was predicted.
Although the current trend of Bitcoin is still upwards, prices might still adjust towards the average uptrend black line in figure 2, which coincides with the USD 31,500 price area.
We can notice today that Bitcoin’s price is sitting between two levels (currently at USD 36,000) which represent psychological price areas:
- USD 40,000
- USD 31,500
Let’s dig in and plot potential scenarios, which will happen in the short-term.
Currently, the price of Bitcoin is about to form a right shoulder, signaling a bearish trend. Siting at USD 36,000 at the time of writing, the price might reach back the USD 31,500 price area and break it downwards, and only then will the crash be confirmed.
In this scenario, buyers will help push prices and keep them strong above the 30K psychological price area. Prices will fluctuate between USD 31,500 and USD 40,000 giving traders major opportunities to day trade and benefit from a sideways trend, until buyers defeat sellers, thus pushing prices above 40K and continuing the uptrend.
Was it REALLY worth panicking?
The mainstream media loves throwing jabs and test articles that “might” perform well. As soon as there’s a price adjustment in the market of 20%, everyone jumps on board and calls it Doomsday, not looking at the fact that Bitcoin made around 600% so far. People are reacting to the double standards on social media:
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Rudy Fares
