Bitcoin has been on a bull run for quite a while now. The rally that started in April has resulted in a 117% increase in the price over the course of 11 weeks. However, the bullish momentum seems to have run out as the price has created lower lows for over four weeks now.
There have been many people using myriad tools and theories to predict the price of Bitcoin. The Elliot Wave faction thinks that the price will dump below $1,000, while the other faction believes that Bitcoin is currently experiencing a pit stop for an upcoming bull rally.
Here is a breakdown of opinion about the possible movement of Bitcoin for different time frames.
Lower Time Frame
The hourly chart for Bitcoin indicates the repeated formation of a rising wedge. The last pattern spread for 24 hours, following which, a bearish breakout of 12% occurred and pushed the price of Bitcoin from $10,800 to $9,500. Although the breakout was expected, the extent of the breakout was not. The reason for such a massive dip is a mystery whale that put a sell order of ~15,000 ETH on Bitstamp, causing a chain reaction that caused liquidations of longs worth $164 million.
However this time, the breakout could range from 5-6%, reaching the 0.382-fib level at $9,441, or proceed to dip a little further down to the support at $9,329. The price previously tested this support and briefly breached it on July 17 at 11:00 UTC.
Supporting the breakout are the 10, 20, and 50 moving average, all of which have been breached. The MACD indicator also shows the possibility of a bearish crossover, following which the breakout might take place.
Higher Time Frame
The daily chart shows a double top formation as the price crossed below the valley,