Noted technical Bitcoin trader Jacob Canfield is making a call that the ‘ideal buy zone’ may be in the $8900-9100 range. With the first support zone failing, Bitcoin may very well make this low before continuing any bullish momentum.
Bitcoin dropped below the $10,000 price point but has since regained some of its losses. Oscillating around $10,000 at the time of writing, some analysts are saying that more short-term pain is still on the table.
More Losses Before Gains for BTC?
According to noted Bitcoin trader Jacob Canfield, Bitcoin has hit resistance on a classic rising wedge pattern. The first support has not held up well. The current rise may likely be a dead-cat bounce, with more downturn expected. According to Canfield, the ‘ideal buy zone’ may soon be upon us, and $8900-9100 is where you may want to stack your buys.
The price action for Bitcoin this month has been strange, and partly propelled by speculation over it being a possible ‘hedge’ against a global economic downturn. For the first time, Bitcoin seemed to move with gold but has since decoupled and moved inversely from the precious metal in the past week.
There are simply not enough buyers at this current price level, and we may need to accumulate more around the $9000 price point before the next major move up.
The long-term prospects for Bitcoin still look positive. With BTC still within a wedge on the daily charts, it will likely break upward once the triangle completes in the coming months. Many analysts were previously calling short-term losses based on a rising wedge pattern on the hourly, which seems to have been validated now.
As for now, it might be smart to wait for confirmation along the $9000 price point because jumping in around this level may prove risky.
Do you agree that Bitcoin may drop a little lower before continuing its uptrend? Let us know your thoughts in the comments below.