Some bitcoin traders expect the market to undergo a more severe correction, but at the same time say that the possibility of jumping to $ 18,000 should not be ignored.
To Report Coin Telegraph surpassed the price of Bitcoin yesterday in the range above 17,000. Earlier, we saw a sharp price correction of $ 19,400. Traders believe that in the short term, the king of digital currencies is likely to fall further.
They cite historical cycles, Fibonacci levels and record-breaking futures contracts as factors that could lead to such a collapse.
Historical cycles and falling prices
The price of Bitcoin has fallen several times by 20 to 30 percent since reaching its historic peak in 2017. Despite the continuing trend, we saw a fall in the bitcoin market as many people entered the derivatives markets.
Based on this historical data, traders believe that if history repeats itself, we should expect the price of Bitcoin to fall to the range of $ 14,500 to $ 13,800.
At worst, some analysts say the price of bitcoin may fall to its peak in August. If that happens then the target price for Bitcoin will be $ 12,468.
One trader, nicknamed Salsa Tekila, said in a statement that the technical outlook for the bitcoin market is relatively clear. He believes that if the price of Bitcoin exceeds $ 17,500 and stabilizes there, the trend will rise again. However, if the price of Bitcoin stays below this level, reducing the price to $ 13,000 to $ 11,000 will not be out of the question.
Analysts point to the Fibonacci 0.618 correction level as one of the most important price areas where buyers may buy bitcoins.
The area on the chart is in the $ 13,500 range. Below 13,500 is very important and a fall below it will indicate a change in trend.
When Bitcoin futures remain above $ 1 billion, the price will tend to fall.
According to reports, throughout the history of Bitcoin, prices usually correct as the trading of futures markets increases.
Skew data show that open contracts on futures platforms have exceeded $ 1 billion. Open futures are valued at $ 1.4 billion, $ 0.94 billion and $ 0.93 billion, respectively, in the OKEx exchange, the Bainance futures platform and the CME futures market, the three major bitcoin futures markets.
Some other analysts believe that it is even possible to raise prices and reach levels above $ 18,000. They also believe that we may see the price of Bitcoin reach $ 18,000 before the massive correction.
The price of bitcoin is in the range above $ 16,000, said Michael van de Poppe, a leading Amsterdam stock market trader.
This could lead to a jump to $ 18,000. Data related to market whales also show that $ 16,000 serves as a strong support level.
Crypto Capo, a Twitter analyst, also believes that the price of Bitcoin is likely to reach $ 18,000 before the price correction.