The Roller Coaster Ride of Bitcoin Prices
Bitcoin has always been like that unpredictable friend who shows up to a party either as the life of the festivities or a sobering reminder that life is full of ups and downs. In early September, as Bakkt clients are preparing to deposit funds into the Bakkt Warehouse, Bitcoin is taking a nosedive, slipping below the $10,000 mark. It makes you wonder, is this the usual market cycle or are we just stuck in a recurring episode of “As the Crypto Turns?”
History’s Echo: Drawing Parallels with Past Cycles
One of the hottest debates whirling around Crypto Twitter these days is the similarities between Bitcoin’s price ‘bubble’ top of 2017 and its recent peak in July 2019, notably around $13,935. Spoiler alert: there are both similarities and glaring differences. For instance, the 2017 peak came after the confirmation of the 100-week Moving Average (MA) and the 21-week Exponential Moving Average (EMA). In contrast, July 2019’s top felt more like the awkward first date that left nobody feeling euphoric.
Moving Averages as Support Systems
Let’s not kid ourselves—moving averages are to traders what air conditioning is to a hot summer day. During the previous bull cycle, Bitcoin found healthy support at the 100-week MA and 21-week EMA which eased the chilly bear market blues. Fast forward to now: do these indicators hold any value? If Bitcoin tests these moving averages, we could be entering a phase ripe for accumulation before the halving event rolls around.
The Altcoin Apocalypse: What’s Going On?
Oh, poor altcoins! While Bitcoin wades through its roller coaster, altcoins are feeling left out. If you’ve invested in one lately, it probably feels like seeing your favorite band play nobody happy hits at a local dive bar. While Bitcoin’s bouncing between highs and lows, altcoin dominance is plummeting, causing investors to question whether they should hold their coins or toss them in the charity bin.
Market Cap Showdown: The Numbers Game
Currently, the total altcoin market cap has flirted around the $125 billion mark, testing historic support levels. You’d think this number would spark some joy—yet it’s reminiscent of altcoin levels in March 2019 when Bitcoin was casually lounging at $4,000. What gives? It appears that for altcoins to gain momentum, Bitcoin first needs to stabilize from its parabolic escapade.
So, What’s Next? Scenarios on the Horizon
Like a well-rehearsed magic show, Bitcoin’s trick of the moment involves breaking key trendlines, which sent its price tumbling down. In a bullish scenario, Bitcoin needs to reclaim support at $9,800 to possibly hit $10,800. On the flip side, if it continues to flirt with resistance around $9,650 without solid support in the lower levels, prepare for a possible plunge to around $8,500.
In the chaos of this market, one thing is clear: the cycle of Bitcoin is both natural and essential for growth. So, grab your popcorn and be ready to buy the dip when the moment calls! Remember, every investment carries risk, and it’s wise to do your homework before jumping headfirst into any financial decision.
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