The famous trader Trader predicts Bitcoin price will rise to $ 8,500 and then drop to $ 3,000 - this scenario is happening




The famous trader Trader predicts Bitcoin price will rise to $ 8,500 and then drop to $ 3,000 - this scenario is happening


The price of Bitcoin (BTC) has recovered strongly from $ 5,200 to $ 7,200 in the past two weeks, despite investors' desire for high-risk assets, including single stocks and electricity. Death, is descending.


A well-known trader - who has predicted the entire price movement of Bitcoin from $ 10,500 to under $ 6,000, said that in the short term, the trend of this digital asset is still bleak.


Daily cryptocurrency price chart. Source: Coin360
Daily cryptocurrency price chart. Source: Coin360

The reason behind a short-term rally to $ 8,500


PentarhUdi, a well-known analyst and trader on TradingView - who correctly predicted most of the past Bitcoin market cycles, initially estimated that the price of Bitcoin would drop from $ 10,500 to $ 5,800 in the first week of February. .


On February 10, 2020, the trader explained that based on the wicks, the $ 10,500 level is technically a lower macro-level bottom and sees this level as a strong historical resistance, Therefore, a pullback to $ 5,800 is highly likely.


Citing the prediction from $ 10,500 to $ 5,800 of PentarUdi, Bitfinex's cryptocurrency whale Joe007 said:



"There is one, and only one, technical analyst in the world that I really respect, and today, just a few hours ago, he made this analysis."





Due to the massive sell-off in the current US stock market and the impact of the coronavirus pandemic - which is spreading throughout the United States and Europe, Bitcoin price has extended the downtrend and dropped to $ 3,600 on one Number of exchanges on 12/03.


The fact that buyers quickly "bottomed out" pushed the price from $ 3,600 to $ 5,200, prompting PentarUdi to predict that Bitcoin's price is likely to rise to $ 8,500 in the short term.


PentarUdi declares:



“This bounce will start from the 200-week SMA ($ 5,200) to the 200-day SMA ($ 8,500). A break above the trend will invalidate this decline. Remember, this is a hypothetical discount of results from previously published ideas. ”



As a cautious note, PentarhUdi warned that due to the panic in today's global financial markets, Bitcoin is still likely to drop below $ 3,000 after surpassing the $ 8,000 mark.


Famous Trader for more info:



“I have a goal of reducing prices from $ 1,800 to $ 2,500. In this case, the 200-week SMA will be broken and become resistance. To disable this, price needs to break above it and turn it into a support. ”



Date chart of BTC / UST. Source: TradingView
Date chart of BTC / UST. Source: TradingView

In short, Bitcoin price is currently witnessing a 200-day SMA relief rally - a point that has served as a strong resistance area for many years. However, there is a strong possibility that this entire rally is only a sign of a deeper correction.


The next price move could be a fake out


In the face of instability in the global stock market and serious warnings from governments that the new coronavirus pandemic is likely to cause the number of deaths to rise in the coming months, the recovery will amount to $ 8,500 of Bitcoin. It could still be a bull trap.


On March 29, Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases, said that coronavirus could cause 200,000 deaths.


If efforts to prevent the outbreak in the United States and Europe fail and the development of the vaccine takes 12-18 months, the sentiment in the cryptocurrency and stock market will probably drop further. .


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According to CoinTelegraph
Translated by ToiYeuBitcoin