Crypto

Will Bitcoin (BTC) Price Really Hit $10,000 or it’s Just an Unproven Forecast?

Bitcoin price has been the most discussed topic in recent times as the asset has been displaying eye-catchy price movements nowadays. While the asset is expected to hit its immediate resistance, the price drops heavily & when the price was on its way to hitting the local support a strong rebound emerged. 

Therefore, considering the recent price movements, some speculate the price to be within the bearish captivity and poised to drop hard. However, some of the facts do point out the prevailing predictions to be not less than any misconceptions. 

Therefore, now is the time to provide some context on where we’re coming from. To begin with, 2 things need to be carefully looked at,

  • Bitcoin price went sideways to hit its ATH 
  • Secondly, the previous pointy blow-off tops are now compared with a flat distribution top

Firstly, no doubt the current chart pattern is extremely bearish in reality. It is also a proven fact that the BTC price reached the ATH around $69,000, moving sideways, actually correcting from the April 2021 top. 

btc1
Source: Twitter

The pink wave in the above chart substantiates the flow which is at an all-time low alignment. While the previous rallies, having the different colour codes above underwent a similar structure but further underwent a parabolic move within the alignment. 

Secondly, the comparison between the rallies needs to be done by the actual money flown into Bitcoin. This is measured by an on-chain indicator ‘Realized Price’. If the above alignment is kept by the ATH and scaled with realized price, it appears even more bullish even in terms of downside potential. 

btc2

The above cycles are aligned by April 2021 top, scaled by realized price. No doubt, the structure does point out some downside potential between 17K to 13K, but $10K or below appears improbable. It has to be noted that the lows were reached on the initial drop below the realized price. 

Therefore, we can definitely expect a further sideway trend ahead and to register new lows, the markets need to undergo a major capitulation event. However, these events are very rare and it appears that they have already passed away. 

Hence, the Bitcoin(BTC) price may eventually rise high but after moving a little sideways. The star crypto, currently displays fewer chances of plunging below $10,000 as a hefty bearish pressure is required to accomplish the task.

Was this writing helpful?




Source link

Related Articles