September 7, 2020 / Forecasts

“Black September”: What Point Will Bitcoin Drop To?

crypto trends

Bitcoin keeps falling and there is a possibility of a BTC price drop below $ 10,000. In this article, we will analyze MMCrypto, Crypto Zombie, and Tyler S predictions and figure out why BTC fell below $ 11,000 and where are the next strong support levels.

Tyler S

Our first guest is Tyler S. He says that Bitcoin will drop to $ 9,700. There are several reasons for this. The first one is the absence of buyers in this segment from the current price to $ 9,700. The second reason is the formation of a head and shoulders pattern. And in third place is the gap on the Bitcoin futures chart on CME.

A gap is a gap on the chart when the opening and closing prices are very different and they only happen on exchanges that work on schedule and are closed at night.

In general, Tyler does not make a big problem out of BTC correction, because he previously expected the market to roll back to approximately these levels. In his understanding, the cryptocurrency market is bullish, and to the extent that it has not been in the last two years. But even in such a market, there are corrections, and this is best seen when prices return to the 21-week moving average over and over again during strong rallies.

Crypto Zombie

The author of the Crypto Zombie channel called September 3 a “bloody day” and one cannot but agree with him. It shows that Bitcoin decided to break the uptrend line and went to test for solid support in the $ 10,300 to $ 10,400 range.

And the trader really counts on the price to stop at this level. He also could not help but notice the price movement towards the gap on the Bitcoin futures chart. But he still expects Bitcoin to stay higher and we can finally say that gaps don’t work.

However, before that, we had 4-week green candles. This means that the correction should have come, as it actually was in 2017.
But this is not a tragedy, because the main uptrend is below $ 9,700, so we can safely close the gap, fall another 10% from the current levels, but the market will still be bullish.

Therefore, Crypto Zombie also does not see any problem in the ongoing market decline, but where he sees it is in the DeFi sector. As he notes, most participants in liquidity mining schemes intend to achieve a certain goal at the rate of tokens and convert them into cash. Therefore, this bubble can burst at any moment.

MMCrypto

Chris, who is the author of the MMCrypto channel, promises us good news. He believes that $ 10,000 is a key level. And the first good news is that resistance, which we could not break earlier, in the range from $ 10,200 to $ 10,400, is now showing itself as a reliable support.

And the main news is that during the bull market, bitcoin constantly tests moving averages for strength and during the previous cycle it did it seven times.

Therefore, Chris looks at the current correction as confirmation of the onset of a bull market. In his understanding, bitcoin completely copies its actions from 2017, which means that we are entering the finish line and preparing to go to the native.

And as a bonus, Chris points to a similar behavior on the part of Ethereum, which, although it fell below $ 400 for a while, the support is working, and we can see similar behavior to the one that was before the previous high in price.

In any case, we do not want to go back to “crypto winter” at all, although for some it will be, on the contrary, a great way to buy cheap bitcoins.

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