Back and forth – that was the impetus of Bitcoin [BTC] since it reached $25,000 on August 15. Although investors might have hoped for further upside, it was not the case that BTC consolidated around the $23,800 support level.
Previously, there had been talk of BTC showing bearish momentum as these projections emerged from unsurprising wedges.
Economist and outgoing bitcoin rebel Peter Schiff says the number one cryptocurrency is on its way to ruin. According to him, the bearish momentum would take BTC to $10,000.
According to CoinMarketCap, BTC was holding at $24,000 with a decline of 0.25% in the last 24 hours.
The king of crypto also saw an increase of less than 1% over the previous seven days.
Just to put the #Bitcoins rally in perspective, take a look at this chart. The figure remains very bearish. There is both a double top and a head and shoulders top. There is a rising wedge that forms under the neckline. At a minimum, support will be tested below $10,000. Watch below! pic.twitter.com/OHNhwsgxxs
— Peter Schiff (@PeterSchiff) August 14, 2022
turn the tables
Interestingly, the fall in BTC prices did not dash investors’ hopes as there was a twist in bearish traders’ opinions. Chartoday, a leading analyst on CryptoQuant, revealed that bullish signs for BTC are still very active.
Based on analysis published via the CryptoQuant website, current macro conditions could take BTC to $26,000 in the near term.
Although there has been weaker demand and negative funding, Chartoday predicts that this will not necessarily lead to lower BTC prices.
Moreover, he thinks the price could reach $32,000 in the medium term.
But does the current momentum align with the buy signals mentioned by the analyst?
Deciphering the possibilities
The odds of crossing $25,000 in the short term can have a positive outlook.
According to the last glass knot data, the active supply of BTC over the past five years just hit an all-time high (ATH) of 24.298%. This recent milestone could be critical for the CryptoQaunt projection and a possible price increase.
However, BTC’s current momentum on the charts indicates that opportunities for price upside may not be as fast as investors hope. At press time, the Relative Strength Index (RSI) was not showing substantial buyer control as it was at 46.34.
Additionally, the Moving Average Convergence Divergence (MACD) synced with the RSI move as the momentum remained below the histogram. This position indicated that the pressure from the sellers had gone beyond the control of the buyers.
Likewise, the buying (blue) momentum was lower than the selling (orange) momentum.
With these contrasting views, a possible short-term BTC hold could be between $23,000 and $25,000 and a possible neutral position.
However, this does not negate the Chartoday outlook, especially since the Bollinger Bands (BB) are not showing signs of extremely high volatility.