The cryptocurrency market is as unpredictable as it gets. Volatility is always prominent and in order to predict an accurate trend, you almost need the ability to foresee the future. However, certain factors in chart analysis do not deceive, as prices often mediate between certain ranges. The breach of an estimated range or resistance is usually followed by a massive surge or flash fall.
Bitcoin sustained a long-awaited pullback over the past few days, after massively surging in the crypto-market for the last few weeks. Last Thursday, Bitcoin reached its yearly high of around $13,800 and it was speculated by some traders that the virtual asset might breach another key resistance sooner than expected, the $16,125 mark, which is the 0.786 Fibonacci resistance.
However, that was not the case as Bitcoin closed below $11,510 last week, triggering the current pullback. At press time, Bitcoin had plummeted below $10,000 for the first time since crossing the mark on 21st June 2019. No one expected the pullback to drain the price of the coin below $10,000, which soon gave rise to another speculation.
0.382 Fibonacci resistance in play?
On May 11th 2019, when Bitcoin rallied to breach the key resistance of $7026, the community was fairly surprised since it was a quick surge of around $1000 in 24 hours. Tone Vays, a popular Bitcoin analyst, opined on the situation and had stated that Bitcoin will surge to $9442 [0.382 Fibonacci resistance] rapidly, but then consolidate lower than that for a period of 9 months, before eventually breaching the resistance. Vays stated that such a scenario would indicate that the Bitcoin bottom was in.
As things panned out, however, Bitcoin ended up breaching the $9442 mark earlier than expected and peaked at $13,800. At press time, Bitcoin had recorded a pullback down to $9808, but a bullish hour had pumped it over the $10,000 mark again.
Source: Twitter
Hence, the current market scenario gave rise to a situation. It was thus suggested that Bitcoin would undergo price corrections down to $9200 and the rally would be back on track. However, the community has speculated that if Bitcoin fell below the key 0.382 Fibonacci resistance i.e $9446, the price of Bitcoin might experience greater devaluation and face greater difficulty to breach the $9442 resistance again.
A part of the community including people like Tone Vays and Vinny Lingham had previously stated that the Bitcoin bottom was not in yet. The next few weeks for Bitcoin are now primed to determine the future of the largest cryptocurrency asset.
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