Categories: Bitcoin Business

Bitcoin breaks above key $8,000 level but it’s not out of the woods yet, technical analysts say

Click here to view original web page at
Getty Images

A Bitcoin conference in New York.

Bitcoin shook off a bearish two months after rising above $8,000 Tuesday but based on past behavior, another pullback could be coming, according to technical analysts that cover cryptocurrency.

“Given that it has trended down so sharply since May, I wouldn’t want to get too greedy,” said Newton Advisor founder and analyst Mark Newton. “Looking at cycles near term, this doesn't mean it will go back to its highs right away."

Newton said he would still “wait and see" if bitcoin can recover based on the digital currency's behavior in the past month. Bitcoin had struggled to break above $7,000 until last week, and traded in the $6,000 range for most of July. It has fallen roughly 50 percent this year, and down 60 percent from its highs near $20,000 in December, according to data from CoinDesk.

Analysts at Fundstrat are watching the 15-day daily moving average, often a proxy for longer-term trends, which has been trending positively for bitcoin.

But the analysts agreed that some short-term indicators are overbought, which often signals a price pullback. Still, the firm expects any drop to be "relatively shallow,” according to technical strategist Rob Sluymer.

“Incrementally, it’s positive action as the May-July downtrend has been reversed,” said Sluymer, who is also a managing director at Fundstrat.

Despite bitcoin's slump in 2018, the firm is hanging on to its $25,000 year-end price target. Fundstrat Managing Director and Head of Research Tom Lee said this week's 20 percent jump signals a return of bullish sentiment.

“A month ago, bitcoin was seen as broken, about to be regulated out of existence, and bubble with downside of $3,000,” said Lee, who was formerly JPMorgan Chase's chief U.S. equity strategist. “The trajectory of the Bitcoin’s narrative has inflected.”

Bitcoin breaks $8,000

One-week performance

Source: CoinDesk Get the data

While $8,000 was an important move, last week’s rise above $7,800 was even more significant, according to eToro Senior Market Analyst Mati Greenspan.

“Once that was broken, $8,000 followed pretty easily,” Greenspan said. “If we can sustain above $7,800, that would be really bullish and would go a long way to impacting sentiment.”

The next level of resistance is $10,000, but even getting to $9,500 from $8,000 could be difficult, Greenspan said.

Investors had a few reasons to be optimistic this week. Bitcoin began climbing above $7,000 last week following news that BlackRock confirmed it assembled a working group to look into cryptocurrencies and its underlying technology, blockchain. Anticipation of a bitcoin ETF decision by the Securities and Exchange Commission in August has also been a source of enthusiasm for buyers.

For now, Mark Newton is anticipating 5 to 10 percent dips and waiting for the fall for a meaningful price rise in bitcoin.

"We'll see a pullback in August," he said. "Historically, you wanted to be invested in November and December."

Bitcoin shook off a bearish two months after rising above $8,000 Tuesday but based on past behavior, another pullback could be coming, […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Tim Draper: $250,000 Falls Short of BTC’s Potential

Tim Draper has made a real name for himself in the world of crypto given his consistent bitcoin price predictions… Read More

6 hours ago

Steve Schwarzman: I Don’t Have Much Interest in Crypto

As the CEO of investing firm Blackstone, CEO Steve Schwarzman says that he’s used to a world where currencies are… Read More

6 hours ago

Volatility for Bitcoin Hits Four-Month Low

At press time, you may not think bitcoin is doing much… And you’d be right. In fact, the currency has… Read More

6 hours ago

ECB Revives Plans for a Rival Coin to Libra & Bitcoin

Facebook feels the heat as the European Central Bank reels out plans to create a digital currency rivaling Libra and… Read More

6 hours ago

HyperCapital Announces Exciting Plans To Build The World’s Strongest Blockchain Community Alliance and Ecosystem

HyperCapital Hong Kong Community Meetup Event Hyper Capital announced the formal recruitment of 300 nodes to jointly promote POAR (Proof… Read More

6 hours ago

US Bookie Found Dead 1 Year After Wife Paid $1 Million Bitcoin Ransom

An American bookmaker kidnapped in Costa Rica has been found dead, even after a ransom of $1 million was paid… Read More

6 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More