Bitcoin 2 mins

Analyst: Bitcoin (BTC) Needs to Break $11,600 to Skirt Consolidation

Avatar Nick Chong 1 week ago

Even since Bitcoin (BTC) hit $13,800 to then retrace by $4,000, the cryptocurrency market has slowed. Don’t get me wrong, volatility is still rife in this market, but BTC’s range is starting to tighten.

As of the time of writing this, Bitcoin sits at $11,200, down around 2% in the past 24 hours — a far cry from the 10% to 20% days seen last week.

Related Reading: Bitcoin Fun Fact: Tony Hawk Has Been HODLing Since Sub-$1,000 BTC

With this extended bout of slower price action, analysts have been wondering what comes next for the cryptocurrency. A prominent trader recently provided an answer, issuing a simple analysis to explain what comes next for Bitcoin and its ilk.

What’s Next for Bitcoin? 

In a recent tweet, Dave the Wave, a popular analyst, claimed that Bitcoin is about to see somewhat of an ultimatum.

He remarked that per his logarithmic chart and parabolic and simple trend lines, BTC needs to soon break past around $11,600 on the daily to “resume its parabolic rise.” Such a move would mark the cryptocurrency breaking past a declining trend line that has acted as resistance since last week’s blow-off top.

Should the parabolic rise continue, Bitcoin could hit $14,000 by the middle of July, which is just over a mere week away.

If this doesn’t soon occur, Dave suggests that Bitcoin will enter a period of consolidation, a period that will be defined by a parabolic trend. According to a chart published by him, such consolidation may see the cryptocurrency range between $8,000 and $11,000, which some would define as healthy price action.

And according to another analyst, Teddy Cleps, the latter, more bearish scenario has a high likelihood of playing out.

Related Reading: Bitcoin Still in Bull Market Territory as Gold Plummets; Will Growing Economic Stability Slow BTC?

Taking the price from an objective standpoint, only considering technicals, Teddy recently remarked that the $14,000 range has acted as “strong AF resistance” in 2017 and 2018.

He adds that every time Bitcoin tried to break past it in early-2018, what followed was a heavy break down, during which BTC often lost dozens of percent and thousands of dollars in the days that followed.

Teddy concludes that unless Bitcoin manages to break through $11,700 convincingly, a return to $6,000 is entirely possible. This pseudo-call is somewhat similar to Dave’s analysis.

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