Bitcoin Party Over? Minimum $3,504 Today to Avert Plunge: Forecast
Despite Bitcoin’s daily increases, a correction down to $3,000 is “likely” unless markets close above $3,500, a report says.
Bitcoin can only avert a bear run if it closes up above $3,504 today, according to a mainstream investment source.
In a bulletin on Bitcoin’s weekly price performance Thursday, FXStreet said that despite all-time highs, the bullish sentiment behind Bitcoin “had run out of steam.”
“On the higher side, only an end of the day close above $3,504 would revive the bull market trend, although we would want to see a spike in the volumes as well,” it stated.
In terms of a “reversal” of fortunes, the publication sees levels around $3,100 or $3,000 as “likely in the short-term.”
Bitcoin traders are used to seeing upticks followed by corrections, as well as significant downturns also followed by value regained over short time frames.
A return to $3,000 would be in line with the trend witnessed in recent months, but the figure had served as a significant psychological ceiling, with a dip below likely having a similar effect.
For FXStreet, the major concern is volume.
“We have repeatedly taken note of the bearish price-volume divergence over the last few days,” the author continues citing daily price charts.
“Now, I am even more convinced that the virtual currency could witness a major pull back, given the volumes surged/breached the downtrend line on the negative price action day.”