Technical analysts Kevin Wadsworth and Patrick Karim of Northstar & Badcharts spoke with Kitco News on 16h, August to discuss their price objectives for the most famous cryptocurrency.
Wadsworth provided a perspective on BTC when the currency reached the goal price of $20k, stating with percentages that, according to technical analysis, Bitcoin may fall as low as $10k.
“Looking at the Bitcoin chart we find ourselves in an inverted arc, the opposite of a cup pattern. We have been rising in a bit of a bounce off that $20,000 area and it’s taken us up and formed a bearish rising wedge-hitting resistance.”
“There are a number of technical analysis techniques and features of this chart that make it more probable it’s going to break to the downside and head down towards that $10,000 – $12,000 target. I would assess the odds at around about 70% to 80% likely that we break down to see these lower lows and about 20% to 30% probability of moving to the upside.”
It’s also important to note that Wadsworth says,
“We can’t rule out that move to the upside,”
but investors are better prepared if they are aware of support and resistance levels are for BTC.
Arc patterns provide more details about the prospective price goal. In his opinion, Wadsworth pointed out that Bitcoin is going in the direction of either the 200-day or 30-week moving averages, which are both extremely comparable on this:
“That’s somewhere just above $30,000 – $33 000 that kind of area by the time we move up to meet it, I guess we could be somewhere around $29,000 or $30,000. So that is the upside target and that’s the highest I would expect it to get. We may well start to run out of momentum before then.”
According to the market analyst, a lot cryptocurrencies have already started to lose momentum and look to have reached their highs for what he refers to as “a bear market rally.” Wadsworth said, “We’re either at or very near to those uh, peaks at the moment.”
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