Bitcoin prices traded modestly higher, but for those looking for a bitcoin price prediction, the largest digital currency by market value still resides near multi-day lows, prompting some crypto market observers to speculate there could more near-term price erosion.
Over the short-term, it is critical for bitcoin’s fortunes that some positive sentiment emerges so that bullish traders have reasons to reenter the market.
“The leading cryptocurrency traded in a sideways manner over the weekend, neutralizing the immediate bullish outlook. However, the consolidation was expected to end with an upside break, as the short-term moving averages (MAs) turned bullish on Saturday, adding credence to positive relative strength index divergence (RSI),” reports Coindesk.com.
Some traders are concerned that if bitcoin slumps below the technically important $6,000 level, selling pressure from there would intensify.
“BTC dived out of the trading range in the US session yesterday and fell to a low of $6,203 – the lowest level since Sept. 12 – indicating the corrective rally from the recent lows near $6,100 has likely ended at Friday’s high of $6,600,” according to Coindesk.
Related: Bitcoin Can Rally Into Year-End, But There’s a Ceiling
Other Issues To Consider
Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
“The bear flag breakdown seen in the above chart is a bearish continuation pattern, meaning the sell-off from the Sept. 2 high of $7,429 has resumed and prices could fall as low as $5,000 (target as per the measured move method),” notes Coindesk. “However, that target looks far-fetched for now. Nevertheless, with RSI at 34.00 (bearish and well above the oversold level), the bear flag breakdown could yield a drop to the August low of $5,859 in the near-term.”
Currently trading around $6,350, bitcoin would need to reclaim $6,600 to encourage buyers to step back into the market.
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