Bitcoin (BTC) has been on a record-setting rally over the past 36 hours. In around the span of some 18 hours, the leading cryptocurrency shot higher by some 42%, rallying from $7,300 to $10,500 and liquidating $400 million worth of leveraged BitMEX positions in the process.
According to an analysis by macro researcher Alex Kruger, the 42% bounce represents the cryptocurrency’s fourth-largest upward move of all-time. Crazy.
But, as one can expect, this behemoth of a move has exhausted bulls, who now seem to be sitting on the cryptocurrency sidelines.
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Reversal Drives Bitcoin Under $9,000
Since peaking at $10,600, Bitcoin’s bullish momentum has tapered off, with BTC falling by $100 every hour for the past few hours. As of the time of writing this article, the cryptocurrency is trading for under $9,000.
It isn’t clear if the reversal stops here, if Bitcoin will resume its attempt to retake a five-digit price point, or if BTC will correct further into the mid-$8,000 region. But, some analysts do have ideas about what comes next.
Prominent trader Hsaka remarked in the tweet below that he expects for Bitcoin to “range between $8,600 and $9,300,” adding that it is unlikely that the cryptocurrency market continues higher immediately.
Now that the clout has been chased and salt been spread, time to look at the chart for what it is.$BTC moved 45% in two days. Looking at the current daily, I'm not expecting immediate continuation.
Think we range b/w 8600 – 9300. Leverage this LTF volatility while it lasts. pic.twitter.com/a8Q92CEB1z
— Hsaka (@HsakaTrades) October 26, 2019
Others have been a bit more blunt. Cred, a popular analyst on Twitter, said that if Bitcoin sees any high time frame weakness at all at $8,800, it would signal bearishness, and thus a possible resumption of a downtrend.
When in doubt, refer back to HTF levels.
My view is that if this move is going to have another leg, the key S/R at $8800s has to provide support.
Perfect level for bias.
If it holds, bearish retest is fodder & we refill that big wick.
Any HTF weakness at $8800s = shit. pic.twitter.com/RHXoggZRdb
— Cred (@CryptoCred) October 26, 2019
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Unpredictable Market
The short-term reversal from $10,500 to sub-$9,000 levels — an approximated 15% move, so it’s nothing to scoff at — has made some traders flip somewhat bearish. They claim that it is possible that this volatility is nothing more than a short squeeze and subsequent correction.
But, it is important to note the unpredictability and irrationality of the Bitcoin market. As trader Felipe reminded his followers, we’ve flipped “ultra bearish to bullish to bearish all in 36 hours… got to love sentiment.”
Ultra bearish to bullish to bearish all in 36 hours… Gotta love sentiment
— Felipe (@PhilCrypto77) October 26, 2019
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