Bitcoin [BTC] Price Anlaysis: Bitcoin Meltdown, Could Retest Lows of $5,500

Rollercoaster BTC Prices

aIt’s a roller coaster for Bitcoin. The up, down and sideways price action is a real mess for traders. It’s also a contrarian move, fading hopes of upbeat investors and traders expecting prices to edge higher as demand for the most valuable digital asset picks up ahead of Q4 and more significantly 2020.

But it seems the wave is turning. Spurred by uncertainty of Q2 2019 and trade and currency wars escalation, BTC acted as a safe haven. However, that is changing and as Trump is confident of a deal with China, he is priming that up by recently signing a deal with Japanese Premier Shinzo Abe.

What happened on Sep 24?

In the immediate term, the knee-jerk price movement-that remains vaguely explained, could be another reason for long term traders to load up. While many analysts are linking Sep 24 drop to a sharp decline in the network’s hashrate-it fell 30 percent, there should be no reason for worry. The Bitcoin network is sufficiently decentralized and secured by miners.

Is it because of CME BTC Futures Expiry?

A hypothesis is that one of the miner had a black-out, and as power went off, rigs were shut-down thereby affecting the network’s hash rate. Others explained that BTC dropped ahead of CME Futures expiry and that it was a well-orchestrated manipulation because these Futures are settled in USD, not BTC.

BTC/USD Price Analysis

At the time of writing, BTC prices are steady against the green back, posting minor losses in the last day. However, in the last week, prices relative to the USD are down double-digits to 17 percent.

From the chart, the sharp decline of Sep 24 was at the back of high trading volumes-$38k against $8k as per Coinbase data, causing prices to break below the three-month support level at $9,300. If anything, bears are firmly in control.

Because of that, every high is a selling opportunity in days ahead as long as prices are trending below $9,000. The first target will be at $7,500 and later $5,500 as mentioned in previous BTC/USD price analysis.

Note that behind the last three days losses, the momentum is strong and bear bars aligning along the lower BB hinting of strong liquidation pressure.

Chart courtesy of Coinalyze

Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.

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