Cryptokoin.com – Bitcoin returned to the headlines after the extreme price movement it experienced before and after the halving took place. The leading cryptocurrency rose to $ 10,100 on May 7 and experienced a 22% slump throughout the weekend. Now, BTC is back and recovered most of the recent losses. Regardless of the high volatility levels, one of the most important analysts in the cryptocurrency industry estimates that Bitcoin is ready for a steep correction before continuing the historic bull run.
Dave the Wave: Bitcoin faces strong resistance
Dave the Wave, a trading master known for his bold price predictions, argues that there are many reasons to believe that the leading cryptocurrency has reached the overbought territory. For example, the moving average convergence / deviation (MACD) indicator showed a downward trend in the daily chart of BTC. The famous analyst suggests that with the 12-day exponential moving average falling below the 26-day exponential moving average, the withdrawal rates from the current price levels have increased significantly.
MACD drops on BTC’s 1-day chart – (Source: Twitter)
Also, according to the analyst, there is an important resistance barrier that could prevent it from moving ahead of the leading cryptocurrency. This supply wall is currently represented by a trendline that goes down to December 2017. Since then, this resistance level has been able to reject the June 2019 rise to $ 14,000, rising to $ 13,200 in mid-July, upward movement at the beginning of August 2019 to $ 12,300 and mid-February 2020 to $ 10,500. Dave the Wave is a successful analyst who knows $ 6,400 and more in Bitcoin, so his prediction is gaining importance.
Master analyst: Bitcoin can act to retreat to $ 6,300
Although it is reasonable to believe that the resistance has weakened over time, the more tested it shows, this multi-year trendline is still very important for Bitcoin trend. According to the analyst, if BTC continues to stay here, the leading cryptocurrency can act to retreat to $ 6,300. According to a downside impulse to this level of support, the analyst can help erase something called “weak hands” while also allowing traders to enter the market again.
Bitcoin faces strong overhead resistance – (Source: Twitter)
A new capital inflow into the industry could eventually raise Bitcoin above the resistance, according to analysts, and BTC could enter the full bull market that most traders have been waiting for. While everything points to a correction in progress, data from Santiment reveals that the number of BTC “hodlers” in the network has increased at an astronomical rate.
Santiment: Bitcoin HODLers are increasing at an astronomical rate
The company’s “Breakdown of BTC holders” chart shows that addresses between 0.001 and 100 BTC, which can be considered as retail investors, have been steadily increasing and reaching higher levels since the last six months. Meanwhile, the number of larger whales with 1,000 to 10,000 BTC began to increase in late April, which coincides with the introduction of billionaire Paul Tudor Jones.
Distribution of Bitcoin holders – (Source: Santiment)
Due to the turmoil in global economies, it is very important to pay close attention to the price movements of Bitcoin in the next few days. According to analysts, the break above the said decreasing trendline will be seen by many as the beginning of a new bull cycle. Conversely, a rejection from this resistance level will open the doors for the kidnappers to make their bullish bets.
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