After undergoing a gigantic plunge during the first week of November, the Bitcoin price maintained a stagnant consolidation for a while before surging slightly. Since then, the asset has been accumulating gains to pull a massive leg up and reach the required resistance beyond $20,000 in the coming days. Meanwhile, the possibility of a ‘Dead-Cat bounce’ hovers over the BTC price rally as the long-term forecast continues to be bearish.
A veteran trader and seasoned analyst believe that Bitcoin’s (BTC) price is closer to reaching key moments within the current cycle, which may determine the targets for the short term. In the latest video update, Tone Vays says that the BTC price currently appears to be weak and due for another capitulation.
“It’s still not looking very good because we are stuck at $17,000 and nothing is rising yet. So we continue to consolidate and to frustrate the majority of people, which is one of the ways in which markets bottom,”
He says that the price is presently struggling along the horizontal resistance line which rests around $19,000 presently. Hence, a rally up to the resistance level appears to be in play since June, which could be a make or a break moment for the price.
The trader cautions that the BTC price could be in the middle of the dead cat bounce which is largely considered bearish in the long term. Hence, points out the possibility of dropping heavily in the coming days.
“ On a weekly scale, it looks like we are still in the middle of a dead cat bounce to that area of the breakdown at $19,000. Once we get to $19,000, that’s going to be the make-or-break area for Bitcoin. So Bitcoin must go higher than $19,000 to make it to $21,000,”
Meanwhile, the short-term forecast for the asset appears to be slightly bearish carrying the possibility of smashing the lower levels at around $10,000. In the case of bearish action, the analyst believes it could be only for a short time frame.
“In reality, I personally don’t expect Bitcoin to go below $10,000. If it does, I expect it to stay there for 10 minutes. And I’m 99.9% confident I will not be able to buy it at that price because either exchange will be down, or I will not be sitting there with my finger on the mouse. So as it is possible for Bitcoin to flash crash to $9,000, $8,000, $6000?… Yes it’s possible but there will be people lucky enough to buy it at those prices so quickly that it will rebound very very fast,”