Bitcoin price is 34 weeks from new $ 24,000 to $ 29,000 range, warns market analyst

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Popular cryptocurrency trader Keith Wareing has warned Bitcoin (BTC) traders against a critical bearish scenario brewing in the market.

Traders spotted Bitcoin inside a reverse cut and grip pattern earlier this month, a bearish pattern that forms during a downward price wave, followed by a period of stabilization. . The technical design generally makes the price drop by as much as the size of the previous drop.

Bitcoin topped nearly $ 65,000 in mid-April before reversing lower in subsequent sessions. The cryptocurrency crashed to $ 28,800 on June 22 after repeatedly trying to keep prices above $ 30,000. He did so successfully, but failed to extend his bullish reversal momentum after facing comparatively higher selling pressure in the $ 35,000- $ 36,000 range.

Bitcoin cup and handle model visualized. Source: TradingView, Keith Wareing

The handle portion of the patterns looked almost depleted, prompting Wareing to say that the price of Bitcoins would fluctuate inside the pattern for another three to four weeks. After that, the cryptocurrency would rise lower, to the point where it could reach $ 24,000.

If the handle fails, expect 24k -29k to be the new range. […] An additional 3-4 weeks of beach-related imo, Wareing wrote in an update on Friday.

Negative outlook for all riskier assets

Bearish warnings for Bitcoin gained momentum in the weeks after global regulators stepped up their crackdown on the cryptocurrency industry. For example, in China, the central bank effectively banned all forms of crypto-related activity, including mining, one of the few surviving crypto industries following Beijing’s restriction on the cryptocurrency trading in 2018.

Meanwhile, Binance, the world’s largest cryptocurrency exchange by volume, has come under pressure from regulators in the UK, Thailand, Canada, Japan and the Cayman Islands over its sprawling crypto operations. .

The UK’s Financial Conduct Authority banned Binance from regulated financial activities last month. This prompted Barclays, Faster Payments and Santander to block its bank customers from accessing Binance.

BTC / USD offers have also declined alongside traditional markets amid growing concerns about the global economy, mainly after days of sharp swings in sovereign bonds portraying slower-than-expected growth and inflation.

We are seeing a shift in asset allocation with people selling risky assets across the board and buying safer government bond yields, noted Shaniel Ramjee, senior investment manager at Pictet Asset Management, after that 10-year U.S. Treasury yields fell as low as 1.276% on Thursday for the first time since February 2021.

Yields fall when bond prices rise.

Bitcoin shows an erratic positive correlation with yields on 10-year U.S. Treasuries. Source: TradingView

Clem Chambers, CEO of financial analysis service ADVFN, suggested that bulls should wait for a crash before dipping their toes into the Bitcoin market again, noting that the next best accumulation opportunities appear when the cryptocurrency drops to $ 20,000.

Still, the bulls were hopeful that the growing recognition of Bitcoin in the mainstream space, especially against lingering fears of higher inflation, would wake the cryptocurrency from its bearish sleep.

Bitcoin has been trapped for most of the past 3 weeks in a long and narrow (8%) trading range of $ 32,500 to $ 35,000, said Ronnie Moas, founder of Standpoint Research.

I see 20% downside [on] China, GBTC block or other negative stock [but] 150% rise by year-end on approval of an exchange-traded fund, another positive headline, [and] shock on the supply side.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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