Bitcoin has been merging for the best segment of the past fortnight and as the range fastens analysts are eying a breakout, however, it is not certain which way it will proceed. Bitcoin movements have been range-bound for the past 10 days and are getting ready for another leg up or down.
Analysts Eyeing Bitcoin Breakout
The triangles formed in the chart are the continuation patterns that usually result in more of the same, and in this case, the trend has been down since the month of April.
In accordance with the recently released reports, a death cross is looming, which is also an indication of a larger plunge to follow. Moreover, some of the analysts have predicted that the price will fall to the level of $18K, and considering the recent market sentiment, it does not seem too far-fetched.
Well, looking the other way, things are not that bad as the long-term fundamental properties of bitcoin remain unaltered, and the institutional giants are in it for the long term.
The analyst and creator of PlanB, the stock-to-flow model has taken a look at the previous corrections noting that they all have been v-shaped. He said:
“Selling big chunks during illiquid hours at the end of each month … followed by continuous buying of small quantities during liquid hours at the beginning of each month.”
Madelon Vos and Peter Brandt Suggesting Worst Case Scenario
Madelon Vos, a long-term bitcoin investor and a macroeconomics analyst, commented that a huge breakout is very believable. He said:
“Combined with positive divergence on RSI and a symmetrical triangle having a possible breakout of $10.000… a very plausible scenario. We could end up around $48 or $25k the next couple of weeks.”
Meanwhile, Peter Brandt suggested a worst-case decline to the level of $22K, asking why anyone would bail on the non-leveraged longs when the market had already plunged so far.