Once again, Bitcoin is stagnating. For a few days now, the BTC price has been in the lower range of the $ 7,000 mark.
Bitcoin’s current sideways movement has prompted analysts to say a massive move could be emerging in the cryptocurrency market. Well-known trader Big Chonis, for example, noted that Bitcoin’s Bollinger Bands on the daily chart are starting to consolidate and narrow as prices stagnate in the lower $ 7,000 range.
The last time Bitcoin’s Bollinger Bands narrowed so much, the analyst noted, Bitcoin climbed a strong 15 percent. Should history repeat itself, the cryptocurrency could prepare for a “much larger” price move than has been seen in the past few days. While Chonis did not indicate in which direction he expects Bitcoin’s price movement, some experts fear badly and claim that it could only be a matter of time before the cryptocurrency could return to its multi-month lows around the $ 6,500 mark.
However, this will by no means be a “game over” for many investors, as the popular Twitter analyst Velvet stated. Velvet also predicted a sharp drop in prices of around 25 percent from $ 8,500 to $ 6,600 in November. Now he argues on Twitter that Bitcoin investors have to defend the $ 6,800 level “with EVERYTHING they have”. This attributes Velvet to the weekly 200-day moving average (MA). If this level holds and the mood of the industry declines significantly, according to Velvet, there will be fuel for Bitcoin to return higher.
Ross Ulbricht predicts Bitcoin price of $ 100,000 by 2020
Meanwhile, the legendary founder of the illegal Silkroad marketplace, Ross Ulbricht, has spoken out. Ulbricht is still thinking about cryptocurrencies, despite being sentenced to two life terms in prison after being convicted of running Silkroad earlier this decade.
The industry pioneer, which many in the cryptocurrency space believe to be the key to Bitcoin’s earliest stage, recently published a series of letters / articles that were then shared online by his friends and family. In it, he discussed Elliot wave analysis, a form of technical analysis that focuses on “long-term price patterns associated with ongoing changes in investor mood and psychology.” His Elliot Wave analysis of Bitcoin’s long-term market cycles, details of which can be found at this link, suggests that Bitcoin will reach $ 100,000 “around or in 2020”.