Analyst on Bitcoin: Lots of bets being placed here
Bitcoin’s price has been in a vulnerable zone for more than a month now. Notably, in the aforementioned time frame, the king coin’s price has hardly deviated from its cozy mid-$30k price band. To make things worse, Bitcoin’s returns have massively dropped over the past three months, thus making the April-June quarter a nightmare.
After witnessing a 3.11% dip over the past day, BTC was trading at $33,625.24 at press time. However, it should be noted that $36,500, at this stage, is a tricky level for Bitcoin. The oversold nature reflected on the BTC’s short-term candles had slowly begun creeping towards the mid-term candles now.
Commenting on the implication of the same, popular analyst Nick Mancini said,
“History tells us making plays at oversold levels can increase pain, but BTC has to break out at some point. Lots of bets being placed here.”
As a matter of fact, open interest for Bitcoin, at the time of writing, was at its highest level since 20 May this year. With the rise in the number of outstanding contracts and the flow of money into the market, ‘extreme fear’ prevalent in the market has evidently reduced to merely ‘fear’.
Commenting on what to expect from Bitcoin in the foreseeable future, popular analyst Nebraskan Gooner said,
“My low time frame expectations are chop & drop a little.”
“Doubt we’ll see any major dumps or anything just probably a low time frame correction or consolidation before further upside.”
At this stage, Bitcoin’s price is seemingly forming a crab pattern. According to pseudonymous analyst Bitcoinsensus, once the pattern completes itself, the king-coin’s price would likely reach a level as high as $48k.
Even though the long-term prospects of Bitcoin seem to look satisfactory at the moment, the odds of an immediate trend reversal look pretty unlikely.Source