Bitcoin
BTC$61 246.04

4.35%

Ethereum
ETH$3 251.17

2.79%

Tether
USDT$1.000228

0%

Binance Coin
BNB$543.37

2.69%

Solana
SOL$148.00

5.58%

USD Coin
USDC$0.999891

-0.01%

Bitcoin (BTC): The Bears Are Prepared to Strike Back


June 2020

After all the hype, and the accompanying bullish behavior of the price, that preceded the halving of Bitcoin, which occurred on May 12, after the last of 210,000 blocks had been mined, Bitcoin seems to have taken time off from any sizable gains (or losses). As of writing, BTC rests in the tight trading range between $8700 and $9700 that began to take shape after the post-halving 15% bullish impulse.

For the past several months, it has been typical for the Bitcoin price to consolidate for a prolonged period of time, which then was usually followed by a stint of high volatility, and the subsequent noticeable price movement. BTC is likely to adhere to that scenario during this cycle of price action, too, so traders should prepare themselves for an upcoming strong impulse.

Indecision that favors the bears


Bitcoin's dominance over the altcoin market is one of the first things that has to be taken into consideration when trading. As things stand, BTC had been losing weight significantly in the overall market capitalization, as its dominance went from being at 69% on May 7 to 65.8% on June 6, before it began showing signs of bottoming out, thus giving altcoins some breathing space.

Bitcoin dominance chart

The decrease in dominance was also accompanied by a literal collapse of Bitcoin's hashrate, which in the post-halving period had dropped from the all-time high at 137 EH/s all the way to 84 EH/s, almost beating the yearly low.

Bitcoin hashrate chart

The hashrate has already made a rebound and began a recovery, which brings us to the conclusion that the price reacted firmly and showed the underlying strength of the bulls who managed to sustain the hashrate drop without letting the price go to the downside. However, this show of resilience resulted in the underwhelming gains during the last 30 days, which amounted to the measly 3% against USD, and even recorded a 13% loss against Ethereum over that period of time.

Also, there has been a significant drop in Bitcoin mentions on social media, Twitter in particular, which signifies the loss of interest towards the first cryptocurrency from individual investors.

Bitcoin mentions on Twitter chart

Therefore, traders should expect a large influx of money from retail buyers any time soon, so the bullishly-minded would be on their own should the bears decide to apply the additional selling pressure.

The price action has already given a hint on the daily time frame about the approaching bearish period.

1-day BTC/USDT price chart

Notice the evident bearish divergence on the 14-period RSI, which emerged throughout May, as the indicator made both lower highs and lower lows, while the price did the opposite. The complexity of the situation in this market lies in the fact that the price of BTC has actually approached the edge of the ascending triangle, the upper resistance of which constitutes a seemingly unconquerable level at $10,000 that Bitcoin has been knocking at since November 2019. Last time Bitcoin tried to break a similar pattern to the upside was in December 2019, and it resulted in an infamous capitulation that began right after the bull trap.

This time around, there won't necessarily be a bull trap, but the presence of bearish divergence on RSI and the inability to break the resistance after multiple tries leads us to the conclusion that Bitcoin is going to experience a significant pullback below the psychological level at $8500 and down to $8000.

Author: Alex Paulson for Crypto-Rating.com

Related

Bitcoin Price Predictions for 2024 and Beyond: Will Bitcoin Soar Again?
Bitcoin Price Predictions for 2024 and Beyond: Will Bitcoin Soar Again?
Celebrating 15 Years of Bitcoin's Genesis Block: A Reflection on Innovation and Revolution
Celebrating 15 Years of Bitcoin's Genesis Block: A Reflection on Innovation and Revolution
The Impending Transformation of the Crypto Landscape: The Potential Impact of a US-Approved Spot Bitcoin ETF
The Impending Transformation of the Crypto Landscape: The Potential Impact of a US-Approved Spot Bitcoin ETF
2024 Cryptocurrency Investment Guide: Identifying the Best Digital Assets
2024 Cryptocurrency Investment Guide: Identifying the Best Digital Assets
Stocks Surge to New Highs Amid Dovish Fed Stance, While Cryptocurrencies Experience a Retreat
Stocks Surge to New Highs Amid Dovish Fed Stance, While Cryptocurrencies Experience a Retreat
The Surge of Institutional Interest in Bitcoin
The Surge of Institutional Interest in Bitcoin
Navigating the Investment Landscape: A Detailed Comparison of Stocks and Bitcoin
Navigating the Investment Landscape: A Detailed Comparison of Stocks and Bitcoin
Navigating the Unthinkable: A Comprehensive Analysis of Bitcoin's Potential Fall to Zero
Navigating the Unthinkable: A Comprehensive Analysis of Bitcoin's Potential Fall to Zero
Navigating the Ebb and Flow: A Deep Dive into the Current Crypto Market Dynamics
Navigating the Ebb and Flow: A Deep Dive into the Current Crypto Market Dynamics

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.4% 48 $61 246.04 4.35% 8.24% $1 207 791 624 997 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 77.6% 46 $3 251.17 2.79% 9.85% $390 841 391 746 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000228 0% 0.04% $112 492 586 189 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 74.8% 48 $543.37 2.69% 9.41% $80 192 402 418 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 83.6% 25 $148.00 5.58% 9.85% $68 679 439 753 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $0.999891 -0.01% -0.01% $33 950 428 770 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 82.4% 29 $0.529085 -1.18% 24.39% $29 525 767 853 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 82% 27 $7.38 1.13% 2.82% $18 491 966 424 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 73.6% 54 $0.112941 1.11% 5.11% $16 389 621 588 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 78.8% 36 $0.436821 -0.38% 23.96% $15 673 589 601 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 80.8% 37 $0.137848 -1.93% 9.87% $12 009 843 432 TRX 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 74.4% 48 $26.30 2.07% 1.42% $10 373 109 265 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 74.4% 42 $0.000018 3.15% 11.44% $10 331 743 395 SHIB 7 days price change
14 Lido stETH (STETH) STETH Lido stETH predictions 91.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 94.4% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.