“Negative sentiment continues to prevail on the Bitcoin price. A hard crackdown from China followed the intense media interest on how Bitcoin is perceived to be harming the environment. Technical indicators show Bitcoin to be weak and at an extremely important juncture. Going below the $30k support could see a large sell-off.
Andrei Stanciulescu is a co-founder of Sublime Traders, and is known as Logicalorange. He runs a successful cryptocurrency trading signals website and has his own large trader following. He was recently interviewed on Kitco News and had an interesting take on where Bitcoin was headed next.
Stanciulescu says that he has a longer-term plan for the next few months. He says the plan takes into account shorts as well as to the upside. He thinks that $30,000 is an accumulation level, but if Bitcoin drops below, then the next important level is at $20,000. He says that in between these two important levels he has a plan for shorts.
Should Bitcoin go down heavily then he thinks that the minimum floor would be at maybe $15,000. He explains that this would signify the completion of a head and shoulders pattern showing on the weekly time frame.
When asked what he thought of another analyst’s prediction of a Bitcoin top of $300,000, he agreed that this was certainly a possibility. However, he said that this figure couldn’t be taken from the charts given that a lot of institutional investment would come into the market at a later stage in order to move the price this much.
Stanciulescu says that he uses what he calls ‘legendary’ trendlines to help him to predict where price goes. These trendlines all go back a long way into Bitcoin price history. The recent correction saw his most reliable trendline break and has led to the present price range between $36,500 and $30,000.
He thinks that the current chart formation is generally a bearish one. Besides the possible head and shoulders, he sees there being an inverse cup and handle in play, also a bearish pattern.
With the added strong resistance above, Stanciulescu sees the Bitcoin price heading to lower levels unless institutional buying comes in soon. He said that once Bitcoin loses the $30,000 level, he then sees $25k and then $20k.
He agreed that big news moved the market either way and that this would indeed have the effect of tipping the price under support or above resistance. However, he thought that the negative news out of China was far more likely to trump the positive news emanating out of El Salvador, even though in his view, the fact that Chinese miners were leaving the market really wasn’t a bad thing.
Given Stanciulescu’s overall bearish sentiment, he does believe that the head and shoulders pattern will play out and bring the price well down. However, he does also think that once we’ve reached the new bottom the price will slowly start building again, but will have to then surmount the resistances created on the way down.
Stanciulescu says that more longer term, after a hopefully fairly quick playing out of the bearish price movement, he believes we could see an $80,000 Bitcoin price, or more, by the end of the year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. “
Source: Crypto Daily™