Bitcoin, the flagship cryptocurrency, recently saw its price climb over 3.5% in the last 24-hour period and is now trading above the $6,300 mark. The price rise is notable as after it declined despite seemingly drowning in a sea of good news analysts started making bearish calls.
One of the most notable bearish calls came from Bloomberg Intelligence analyst Mike McGlone, who stated the cryptocurrency was going to fall below its year-to-date low of about $5,800. He stated:
Bitcoin is in dump mode, following the pump run-up on the potential for a U.S. ETF. It may not subside until revisiting good support near $4,000 -- last year’s mean.
The bearish calls came after BTC slipped below a key technical indicator, its 50-day moving average, as covered on CryptoGlobe’s BTC price analysis. The cryptocurrency market’s slump has, seen a renowned market analyst claim this could be “game over” for the cryptocurrency.
Other analysts, however, believe the cryptocurrency may bounce back, although it needs time to recover from the selloff. Per Jon Pearlstone, publisher of a cryptocurrency-focused newsletter, bitcoin may maintain a bullish trend if it manages to hit $7,000 quickly, without “any [sizable] pullbacks.” If it doesn’t, “much lower prices become a real possibility in the future.
Analysts’ concerns are based on the US Securities and Exchange Commission’s (SEC) influence on the market with its bitcoin ETF decision, whose deadline it recently set for September 30. As CryptoGlobe covered, after the SEC rejected the Winklevoss twins’ bitcoin ETF application, BTC dropped over 3.5%.
Dan Morehead, the founder and CEO of cryptocurrency-focused investment firm Pantera Capital has, however, argued investors shouldn’t focus on bitcoin ETF rejections, but on the Intercontinental Exchange’s venture with Microsoft and Starbucks, Bakkt. As covered, Wall Street analyst Tom Lee explained why Bakkt’s one-day physically settled bitcoin futures product is a big deal.
Notably Rob Sluymer, a technical strategist at Fundstrat Global Advisors, seemingly made the right call. He stated:
I expect the next level of support down close to $6,100. It’s pretty early to make the case that you need to go long. It’s got to stabilize first
According to CryptoCompare data, bitcoin bounced off of the $6,100 mark and jumped to $6,400, before correcting to about $6,350 at press time. Curiously, its recent price rise saw it slip over its 50-day moving average.
Mati Greenspan, a senior market analyst at social trading platform eToro, noted that while the 50-day moving average may have failed as a support for the cryptocurrency’s price, on the top the 200-day moving average is “acting as a perfect point of resistance.”