The recent dip in bitcoin price has shocked the new investors. However, it is not new for seasonal bitcoin investor who is in the game for quite a long time.
The recent sideways movement around $8,500 is now hinting at a bullish movement. According to technical charts, the bitcoin price is constantly testing the $9,000 mark. It managed to reach $9,070.64 on Feb.10. However, it dropped down to sub $8,500 levels. At the time of writing, it is $8,695.
All these signals suggest a strong resistance at $9000. That’s a good signal for a breakout. According to the charts, it will do the sideways movement for the upcoming few days or even weeks before it starts to break out.
For the price to break the resistance, the current market perception also needs to change. The market cap is currently standing at $420 billion. A lot of money also need to come in for the resistance to break. The biggest advantage of the recent dip of 65% is taken by bitcoin whales.
Coindesk also recently published new charts that showcase the probability of the resistance.
The charts hint resistance at $9,000 and also now falling under $8,500 which shows bullish signs. The 10-day and 5-day moving average also show a bullish trend.
In long-term, bitcoin might see an upward movement anytime, and it all depends on the market sentiments towards cryptocurrency.
The recent dip has also been because of the FUD on various media outlets including India bitcoin ban FUD. Now that the market sentiments are neither towards positive or negative, we can see a sideways movement for quite some time. If it breaks, it can reach levels up to $12,000.
With China ban already in effect, it is all about the time that the market prices stay constant for a long period. Once all the FUD clears, the market can only grow in the right direction.