According to some analysts on Twitter, Bitcoin is in a consolidation phase after its remarkable 300% increase in price during 2019.
Technical analysis for Bitcoin has become something of a guessing game. Both bullish and bearish analysts have put forth scenarios and predictions for BTC movement in all directions.
As the market continues sideways, the debate is only intensifying. Bulls are arguing that the current price stagnation is a bull flag, while bears suggest that the stagnation has created a descending triangle.
#bitcoin recently had a 300%+ move to a top.
It looked parabolic, but the action since confirms it wasn't.
This is consolidation in a bull uptrend. Consolidation in an uptrend is a continuation pattern.
Don't let the market fool you into thinking otherwise. #opportunityknocks
— Bob Loukas (@BobLoukas) September 13, 2019
The bull flag theory expects a time of consolidation of the price, after which Bitcoin’s next halving event will drive the price much higher. During this period of price stabilization, BTC might find support at or around the $10,000 mark.
Of course, the descending triangle theory also sees a price stagnation near $10,000 with a substantial drop off coming in the short term. Many analysts suggest that the price could fall as low as $5,000, depending on the amount of fear-selling in the market.
With so much noise on crypto-Twitter, it can often be difficult to wade through the information in search of the truth. Of course, diehard Bitcoin fanatics point out that the charts have looked like this many times in the past decade. Nevertheless, the underlying fundamentals have moved the market into huge growth.
Whether @BobLoukas is right about his prediction or not, the fact remains that technical analysts will continue making contradictory suggestions. For investors, the deeper issues to consider in the industry are related to the fundamentals.
Do you think Bitcoin is headed into another strong bull market phase or has the market reached another top, and is ready for a correction? Let us know your thoughts in the comments below!
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Images courtesy of Twitter.