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Analyst: Bitcoin must fall sharply before new rally can start

  • Bitcoin remains trapped in a narrow price range between $8,900 and $9,400 and is currently trending sideways.
  • Some analysts claim that BTC has to go through a correction before a new uptrend can start.
  • VeChain, Cardano and Chainlink show the biggest profits in the last 30 days.

Bitcoin‘s volatility remains low and is at a historic low for the year. Within the last 24 hours, the Bitcoin price has dropped 1.36% to a price of $9,131.57. The market capitalization is still close to $167 billion, so that BTC has been trading in the narrow price range between $8,900 and $9,400 for more than 2 weeks.

Blockroots founder Josh Rager describes how Bitcoin never immediately started a new rally after such a long sideways trend. In the past, there was almost always a correction before, as seen most recently on “Black Thursday” in March, when Bitcoin showed a correction of more than 19%. In his opinion, this time BTC could draw a much larger downward trend before a new rally begins.

Bitcoin must not fall below the important support level along the $8,900 mark on the daily chart, according to Bitcoin Trader “HornHairs”. However, he believes that a further correction is very likely before BTC could initiate a trend reversal. Should Bitcoin fall below $8,900, a correction to the $8,140 level could follow, the analyst said.

Some analysts interpret the current price movement as the start of a new up or downtrend. Bitcoin Trader “Byzantine General” states that Bitcoin is currently not sending out any clear signals, however, which do not indicate a trend reversal or a continuation of the sideways trend. The current price movements are unpredictable, so he calls on his followers to work with intelligently set stop-loss positions.

Cardano, Chainlink and VeChain the biggest winners

Ethereum, Litecoin, Ripple and many other Altcoins follow the trend of Bitcoin and have been trending sideways for the past 24 hours. On the 30-day chart, Cardano with a price increase of more than 55%, VeChain with 41% and Chainlink with more than 100% are drawing the biggest profits. The price of Cardano has risen sharply due to the upcoming launch of Shelley.

VeChain was able to reach numerous milestones in the last weeks. For example, CEO Sunny Lu announced that VeChain will give the keynote at one of the world’s largest conferences in Shanghai, the “Artificial Conference 2020” as the first block chain project ever. Furthermore VeChain and its technology has been awarded by numerous institutions as innovative and trend-setting. VeChain was also able to win numerous new partners, who successfully use the VeChainThor Blockchain.

Chainlink is considered the new industry standard in the area of Oracle applications for companies. On July 08, Chainlink entered into a cooperation with crypto lender Nexo. According to official statements, Nexo has more than 800,000 users and thus ensures a further increasing adoption. Other new heavyweights in the industry and Chainlink partners are companies such as Hedera Hashgraph and Matic Network.

About Author

Collin Brown

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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