Bitcoin’s Resilience at $7,800
This week marks the fifth consecutive week that Bitcoin (BTC) has steadfastly held its ground around the $7,800 support level. With the price bouncing back to over $8,200, it’s looking like a classic ‘will they, won’t they’ moment for crypto lovers. The party isn’t over just yet, folks!
The Significance of Support Levels
The daily and weekly charts reveal some interesting movements: Bitcoin has shown resilience this past week by repeatedly rejecting support. After hitting a high of around $8,400 on October 14, BTC found its footing with the Bollinger Bands (BB) indicator providing support. This week’s price ranged at the lower half of the Bollinger Bands, tightening the lines and reducing resistance to $8,550 while the moving average dropped to $8,120. If Bitcoin can hold above $8,120, we may see a breakout; otherwise, it may be a bumpy ride down.
Weekly Outlook: Thoughts from the Bear Cave
The bearish sentiment can’t be ignored. Gold enthusiast and Bitcoin skeptic Peter Schiff recently tweeted that Bitcoin could dive to $2,000, claiming the charts look dreadful. His chart fortunes emphasize a painful head-and-shoulders formation. While his doom-and-gloom predictions might erode your faith, the dwindling size of the weekly candles might suggest we’re inching towards a turning point.
RSI’s Hint of a Possible Boom
The Relative Strength Index (RSI) on the daily chart has recently flirted with the 30.75 mark and is hinting at a possible bullish reversal. Is it too early for bull celebrations? Perhaps! However, the crypto community is buzzing, especially after Jason Williams tweeted about an upcoming halving event suggesting a price shoot-up to $55,000. When it comes to Bitcoin, hot air balloons and high hopes go hand in hand!
Mining at Risk: The Profitability Equation
Bitcoin miners shouldn’t grab their pickaxes just yet. Profitability is sliding closer to annual lows, reminiscent of when Bitcoin was floating around $3,500. Only miners with specific low electricity costs, like 0.06 cents per kWh, are hanging by a thread. With more than 60% of hash power in China, a dip in Bitcoin prices could trigger financial chaos—like watching your neighborhood cafe go under because avocado toast became unaffordable.
Bullish vs. Bearish Scenarios
In a bullish twist, for the bears to retreat, Bitcoin must cling above that $8,120 moving average. Should it catapult past $8,550, the sky’s the limit to $9,846 and time to measure for a potential jump to $12,100. Conversely, if it slips below $7,860, we might be staring down the cavernous abyss of $7,000—a 15% drop that could stifle mining businesses and leave HODLers holding back tears. Remember, in the crypto realm, every upsurge might just be a prelude to a nosedive.
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