Over the past few months, the Bitcoin price has apparently been stable or less volatile than on other occasions. Cointelegraph in Spanish spoke to the economist Nicolás Litvinoff, the director of “Es Tu Dinero” in Argentina to better understand the current situation.
“”When it comes to price, not Bitcoin’s intrinsic value or industry problems, but simply the price, It is best to use technical analysisbecause it explains very well what Bitcoin does in the short and medium term. And also in the long one ”, Litvinoff clarified before he started with his detailed analysis.
“What I see when I look at Bitcoin’s technical analysis, is that on the one hand there is a very long-term upward trend. We all know that the price of Bitcoin has risen with a few years of decline since its introduction, but that the trend is undeniable in the long run that it is rising. But On the other hand, there is a medium-term downward trend that started on December 17, 2017when it hit the all-time high of $ 20,000. From there, a downward trend emerged that the BTC tested several times. He did it in the middle of last year (2019), he also did it in February this year and then in May and a little bit in June this year. These are tests that are being conducted from below this downward trend, ”he added later.
He also remarked: “This downward trend eventually peaked at $ 10,000. So it seemed that when it exceeded $ 10,000, Bitcoin could not get up and fell immediately because it was getting into this medium-term downtrend.“”
But what exactly is happening right now? To this question Litvinoff replied: “Now, right now, with this downtrend line, the upper limit is $ 9,700 and that’s the upper limit that Bitcoin can barely break. And so we see that it is very short and sinks again when it reaches or closes these levels“”
On the other hand, he explained that at the same time A floor is being created for this downtrend, which has to do with its moving averages: “The moving average of 50 is $ 9,300, where BTC is now more or less. It’s about $ 9,100 or $ 9,200. But you’re using this 50-tier stocking, and it would be nice if you didn’t break it. But if you break it, the average is 200 at a value of $ 8,300 or $ 8,400 or so. It has a very strong floor there. “
What could happen to the Bitcoin price?
For the economist The expectation would be that Bitcoin would continue to “trade” between an upper limit of $ 9,300 and a lower limit of $ 8,300 or $ 9,200, but the “further between these levels”, until it takes the momentum and strength to get over $ 9,700. To do this, he said that this would require some positive news or a stronger buying spree.
“In this case, however, we would have to find that Bitcoin trades above USD 9,700 for at least a week and moves 3% away from that value to take into account that this very important level from 2017 is broken this level. That’s over USD 10,000 trading for more than a week. There we would say that this downward trend of more than three years has broken, “he added.
“”Currently, the company continues to operate with a long-term upward trend that strengthens its price, but with a medium-term downward trend that prevents Bitcoin from peaking again or consolidating strongly above it. Price level“He concluded.
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