Bitcoin Could Fall as Low as $7,100 in This Analyst’s Bearish Scenario
While Bitcoin is pressing higher, not all analysts have counted out their bearish scenarios.
One cryptocurrency trader shared the chart below on September 14th. It shows that there is a scenario in which Bitcoin falls to $7,100, 35% below the current price.
The reason why this trader’s bearish scenario has $7,100 as a target is that there is a confluence of key technical levels at that point, making it an attractive level for sellers to push towards. The following technical levels currently sit at $7,100:
Chart of BTC's price action over the past few years with analysis by crypto trader Coiner-Yadox (@Yodaskk on Twitter). Chart from TradingView.com
Unlikely to Play Out
The bearish scenario is unlikely to play out, though.
One crypto trader shared the chart below, which shows that Bitcoin has recently bounced cleanly off a pivotal technical level. The level BTC bounced off of held multiple times during previous bull markets and held as resistance during previous bear markets.
Bitcoin managing to hold the level suggests that the expectations of a further uptrend are likely:
Chart of BTC's price action over the past few years and past few weeks with moving average analysis by crypto trader "Nunya Bizniz" (@pladizow on twitter). Chart from TradingVIew.com
Adding to the Bitcoin bull case, the Federal Reserve released a Federal Open Market Committee announcement on Wednesday.
The announcement asserted that the central bank will keep interest rates low:
These low interest rates could be a boon for Bitcoin, which should outperform during inflationary times.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com If Bitcoin Enters a Full-Blown Correction, the Bottom Could Come at $7,100
Originally from Bitcoinist.com https://ift.tt/35KJOfK
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