Bitcoin traders expect a "long compression" phase now that BTC trades below $ 21K

Bitcoin traders expect a “long compression” phase now that BTC trades below $ 21K – Mail Bonus

Crypto traders were given a brief opportunity to pause and take stock of where things are on June 16 as non-stop sales that have hammered Bitcoin (BTC) and the wider market over the past week began to give way despite continued sales in traditional markets.

Data from Cointelegraph Markets Pro and TradingView show that after rising to $ 23,000 in the first trading hours on June 16, the price of Bitcoin slowly decreased after declining trading volume and reached a low of $ 20,765.

BTC / USDT 1-day chart. Source: TradingView

Here’s what some market analysts are saying about the prospect for Bitcoin continuing as cryptocurrencies try to determine if the bottom is in or if there is a major flaw ahead.

A multi-month compression of a 200-week MA can be expected

A big perspective of the journey that Bitcoin has taken over the years and how its past can provide insight into the current market structure was discussed by an expert and pseudonym Twitter user Rekt Capital, who insert the following chart shows BTC behavior near the 200-week moving average (MA).

BTC / USD 1-week chart. Source: Twitter

Rekt Capital said,

“If #BTC continues to hold the orange 200-week MA as support and the black 200-week EMA numbers as resistance … $ BTC could form an accumulation range here, just like in 2018. This would allow months of compression to level up until December. 2022. “

If this is the scenario that plays out, then cryptocurrency buyers do not have to rush to collect BTC, a point pointed out by the cryptocurrency and pseudonym Twitter user Altcoin Sherpa, who insert a few tables that underline the time BTC spent in previous accumulation phases.

BTC / USD 1-week chart. Source: Twitter

The longest accumulation period that Altcoin Sherpa has observed is the 287 day period described in the image above. Other examples given are 133 accumulation days between November 2018 and April 2019 and 63 days of accumulation between May 2020 and July 2020.

Altcoin Sherap said,

“It is likely that you will have enough time to reach the bottom of the accumulation stage. “Bitcoin takes a while for its bottom to form and you should probably just go out and touch the grass instead of grabbing the knife.”

Bitcoin could recover $ 25,000, if we’m lucky

A more positive attitude towards the latest developments for Bitcoin was offered by the cryptocurrency broker Nebraskangooner, which given the following table states that “a lower Fibonacci level has been reached”.

BTC / USDT 1 week chart. Source: Twitter

Nebraskangooner said,

“Let’s see if daily can close strong over resistance and then we have a chance of $ 25,000 and possibly mid $ 30K. For the first time in months, we could finally be ready for the jump that everyone has been calling for since $ 40,000. “

Connected: Further disadvantages are expected, but many data points suggest that Bitcoin is undervalued

RSI 1000 gives a bullish signal

Another trader who has seen a potential bullish signal on the chart for BTC is the pseudonym Twitter user TAnalyst, who insert the following chart shows the recent low for the Relative Strength Index (RSI) 1000.

BTC / USD vs RSI 1000 1-Day Chart. Source: Twitter

TAnalyst said,

#Bitcoin It is only in the lower days, BEFORE the bull runs, that the daily RSI (1000) is below 50. Today: RSI (1000) = 49.91. Conclusion. “

Based on the history of the RSI 1000 points that fell below 50, the price of Bitcoin could soon start to climb higher.

Perhaps the best summary of the current state of the Bitcoin market and the confusion it causes cryptocurrencies was provided by the cryptocurrency teacher IncomeSharks.

The total market value of cryptocurrencies now stands at 905 billion dollars and the dominance of Bitcoin is 44.3%

The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.