Several attempts by BTC to stay above the $12,000 mark ended in failure. Bitcoin even fell briefly below $10,600. Uncertainty is in the market.
Bitcoin Dominance decreased by more than 5% over the month and is less than 57% now. Altogether, this gives analysts reason to predict a further decline in the price of bitcoin. Coindesk analyst Omkar Godbole is confident that this will happen. He stresses that bitcoin made 4 unsuccessful attempts to rise above $12K. As a result, the BTC chart formed a head and shoulders pattern, which traditionally means a trend reversal in technical analysis. However, if BTC stays at $11,170, then the uptrend could continue, according to Godbole.
Popular analyst Michael van de Poppe (Crypto Michael), a trader on the Amsterdam Stock Exchange, tweeted that he admits the price of BTC to rise in the short term, but supposes a bearish trend in the long term. The reason is that BTC dropped below the critical $11,600 support line:
And that’s why you take some profits on the way up.
Significant drop on $BTC here, couldn’t hold the $11,600 area.
Could still, very well, be a wick south, but overall I’m expecting short term bounce coming in.
— Crypto Michaël (@CryptoMichNL) September 2, 2020
Proponents of fundamental analysis advise not to rush to sell BTC. There is no apparent reason for the crush. But technical analysts insist that a dip below $11,000 would mean a further drop to at least $10K. Observers note that BTC has recently been inversely correlated with fiat currencies and in particular with USD. If the dollar continues to strengthen, then a fall in BTC below $10,900 is almost inevitable.
A week ago, investors were optimistic about BTC and pessimistic about the dollar, Max Keiser in his financial and analytical program argued that Bitcoin’s rise will not stop until it reaches the $20K mark. He drew attention to the rise in the price of gold, which meant the uncertainty of the US dollar. However, the gold chart also began to draw a “head and shoulders” pattern, which means a change in trend, that is, a fall in this asset. For 3 days, gold has already lost $70 in price per ounce.
Bitcoin has also been perceived as a defensive asset for some time. This was pointed out recently by the Winklevoss brothers, creators of the Gemini exchange. And they added that bitcoin remains a large undervalued asset. In their opinion, the fair price for BTC today is $500K. However, technical trader Dave the Wave responded to this statement on Twitter with an analysis of the BTC movement. According to his calculations, BTC will be worth $500 thousand in about 2029. Dave the Wave is known as an analyst who accurately predicted the crush of BTC from $11,600 to $6400 in 2019.