Bitcoin has been trading trendless for a while. Despite the short-lived high of $10,100, bitcoin has been caught in a relatively tight holding pattern between $9,300 and $9,900. Bitcoin’s 30-day volatility is now at 34.59%, the lowest since March 12. It is generally believed that bitcoin has entered a consolidation period, and that the longer bitcoin stays in the low volatility zone, the more violent a move it will make.
But will it be a breakout or a breakdown? Speculations of bitcoin trends are flying everywhere and each analyst has different data to support their theories. For the bulls, the open support of top traders such as Bloomberg and Grayscale is a strong confidence boost. Besides, data such as the low exchange reserves and bitcoin addresses at its all-time high suggests that a large number of hodlers are positive towards the long-term performance of bitcoin.
On the other hand, since bitcoin failed to hold the $9,400, many analysts anticipate bitcoin to get rejected again at $9,400 and then start a disastrous downfall to $7,000. Pentarhudi, a respected bitcoin trader who has made some accurate predictions recently claimed that bitcoin could very well drop to as low as $6,000.
According to Pentarhudi, a triple top formation is evident on bitcoin’s daily chart: “Triple top on daily… Bearish pattern. Will trigger at close below $8000 with a target to $6000. Either triple top or range lock.”
Another bearish factor is the mining difficulty adjustment on June 16. The newly adjusted mining difficulty level saw a 14.95% raise, the biggest difficulty jump since in the past three years. The increased difficulty will put pressure on miners as they need to spend more time and energy to mine each block. Miners with less efficient equipment may be forced to sell their coins to relieve pressure, thus resulting in a sell-off.
On June 15, a massive sell-off caused by bitcoin whales occurred, dragging bitcoin price to $8.9K. The sell-off reminds us of the great crash on March 13, which was also caused by whales selling high up. Bitcoin has rosed 130% since March, and many are speculating whether whales are preparing to take profits by selling their coins.
Michael van de Poppe, a full-time trader at Amsterdam Stock Exchange, revealed that if bitcoin fails to hold $8,600, a downtrend to $6,000 seems very possible.
“My viewpoint on the market is that we’re on a crucial pivot… Why a crucial pivot? If $8,600 is lost, the uptrend is lost and potentially many stop/loss triggers can cascade a further downwards drop. In that regard, I assume the levels around $7,300-$7,600 are likely to be tested and potentially even the 200-week MA around mid $6ks for a required test.”
One way or another, we are in for a rollercoaster ride in the coming weeks. If you are new to the crypto world, don’t stress yourself out. Just remember, volatility is very common in bitcoin trading, and it is one of the best ways to make profits when used wisely.
Bexplus – Go-to Leveraged Trading Exchange for Beginners and Veterans
Leveraged trading is a mature and popular instrument in bitcoin trading. Traders can benefit from the price swings and maximize profits with leverage. With the 100x leverage of Bexplus, traders can open a position 100 times larger than their initial investment.
To illustrate: if you have 0.1 BTC and want to short BTC at $9,500, you can open a short contract of 10 BTC with the 100x leverage. When the price drops to $9,000, you will earn 10 BTC * ($9,500-$9,000)/$9,000 *100% = 0.555 BTC
Established in 2017 and headquartered in Hong Kong, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP and etc. Operating worldwide, Bexplus is favored by both beginners and veterans.
Step 1: Create your own account without the risk of information leakage. With Bexplus’s no KYC policy, you only need to verify your email. The registration only takes a few minutes.
Step 2: Familiarize yourself with the trading engine. Every use is given a demo account with 10 free BTC for practice. You can quickly learn to trade and perfect your skills without risking any money.
Step 3: Start the real game. No deposit fee required, the minimum trading amount is 0.001 BTC. Bexplus supports Bitcoin, ETH, and 11 other cryptocurrency deposits, as well as USD, EUR, and GBP deposits. With one Visa Card, you can start your journey of accumulating bitcoin. If you have any problems, the 24/7 support is always ready to help you.
Step 4: Take advantage of your phone to monitor the market. Price swings are very common in the bitcoin market, so a good mobile app can keep you updated and reduce your stress. The top-ranking Bexplus mobile app has one of the most intuitive interfaces that could help you better manage your account. With the 24/7 market notification, you can always stay tuned with the market movements.
Step 5: Take your win! You can withdraw BTC 24/7 and you can receive your BTC in as fast as 30 minutes during work hours. Only email confirmation is required.
Before starting your journey with Bexplus, don’t forget to claim your 100% deposit bonus! Up to 10 BTC is given and the profits gained with the bonus are withdrawable. 10% off of the transaction fee is also available to active users.
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