Bit News Live

Analyst Expects Bitcoin to Retest $11.7K as Price Slips 6.10%; Here’s Why

Bitcoin experienced as a sizeable selloff at the beginning of this week against an improving risk-on sentiment.

The benchmark cryptocurrency was down by as much as 6.1 percent from its weekly high at $11,823. On Tuesday, it briefly hit a sessional low at $11,102 before rebounding higher on renewed buying sentiment near the said level. Commerzbank analyst Carsten Fritsch noted that a recent rally in stock markets put downward pressure on safe-haven assets.

Gold, Bitcoin’s top rival, also plunged lower in the first two days of this week on similar sentiments.

Bitcoin Eyes $11.7K-Retest

While Bitcoin may have undergone a short-term bounce on its way downward, one analyst still sees it is a sign of sustainable upward momentum. The pseudonymous daytrader tweeted earlier Wednesday that he expects BTC/USD to log a full recovery towards $11,700.

“$11.5K reclaim for added confidence that lows in,” he added.

bitcoin, btcusd, cryptocurrency, xbtusd, btcusdt

Bitcoin bounces back after testing $11,100-level as support. Source: TradingView.com, Crypto Mikey

The BTC/USD exchange rate kicked-off Wednesday session with modest upward moves. As of noon Shanghai time, the pair was trading near $11,377, up 0.48 percent into the day.

The intraday gains appeared on weaker signals from the futures tied to the S&P 500 and the Dow Jones index. They were down 0.02 percent and 0.12 percent, respectively. It pointed to a weaker session in the US stock market after the New York opening bell Wednesday.

Gold futures were up 0.43 percent at $1,931.30 an ounce. The US dollar index was trading higher by 0.07 percent.

The macro factors put Bitcoin in a conflicting position intraday. The cryptocurrency may continue its rebound to break $11,500, as the analyst suggested, or it may head even further lower on lower bids at local tops, as another analyst stated in a separate tweet.

“My highest area of interest remains around 10.5k,” the other analyst said. “I’ve sold off the #bitcoinI bought earlier today from last weeks sales. Will buy back at 11.7k daily close or 10.5k.”

Downside Risks

That left $11,700 and $10,500 as two concrete levels to watch for buying opportunities, at least for prominent daytraders. Meanwhile, some even suggested a more significant price breakdown towards $9,700 because of a CME gap. Spot Bitcoin fills the missing candle on the futures chart 90 percent of the time, historical data shows.

On-chain analyst Willy Woo mentioned the same in his Tuesday tweet, albeit adding:

“The CME is quite new and certainly was not around in 2016 when we had a similar stage in the macrocycle.”

bitcoin, btcusd, cryptocurrency, xbtusd, btcusdt

The Bitcoin Futures gap at near $9,700 on CME charts. Source: TradingView.com

Meanwhile, Mr. Woo gave other reasons behind a potential, extended Bitcoin downside move in the coming sessions. That ranged from higher coin movements across the cryptocurrency exchanges to technical ranges that are past maturity.

“Overall, my interpretation of on-chain and on-exchange technical is 2-3 weeks of pull back, inside of a larger bullish structure,” said Mr. Woo.

Source
Bitcoinist.com

Add comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Live Price

powered by Coinlib

Crypto Converter

powered by Coinlib

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

%d bloggers like this: