Bitcoin continues its path to the bottom, and $7,800 might not be the lowest low in this period. What to expect from Bitcoin price? How low it can get during this downtrend? Let’s see what TradingView users think about it. Read BTC price predictions from TradingView.
What’s the best buy opportunity?
BCT/USD Weekly chart shows that the key support will be at $7,712 and this support is 100 Day MA.
This is a strong support zone, and now $8,216 and $8,452 are also act as short term resistance. We can break those resistance levels, and then we can see a $9,500 BTC price.
And if we can break $7,712 support level down, then we can see the next Support Level and our next buying opportunities. $7,081 and $7,185 is our key support where we can buy or long Bitcoin.
The whole current cycle of accumulation might last for 4 months.
Wait until December
It looks like we have a much steeper sell-off. Based solely just on the MACD Histogram, its showing that selling has just begun. The charts showing $6,000 or less are starting not to look so crazy, especially when you take into account the RSI and MACD on the 1W. Pure and simple, it’s showing a deeper selling before finding stability.
There is no point in the MACD where it started selling off and immediately stopped. It showed a few months of bear market activity (red) then followed by bull markets (green). If we go just off that, it looks like selling has just begun and has a little before a new bull market. Possibly, in December.
$6K Price is Expected in October
Bitcoin (BTC/USD) is now moving within a descending channel going lower.
There might be a potential bounce in place or further drop. Bitcoin can easily move lower, according to the chart above, but a bounce is also very likely.
As for the mid $6,500 price (alanmasters looks at the $6,200 - $6,500 range), so we are looking at this level for BTC/USD to fully complete this retrace. Depending on how this level is handled, we can think about Bitcoin’s next move.
Here is what we see:
- If Bitcoin can bounce at current levels with good strength and volume, it can resume its recent uptrend. But this is very unlikely as the chart is right now but there are always unexpected events that can happen. So just as we can see strong drops come out of nowhere, in the same way, "magical" reversals in price can happen.
- BTCUSD can easily bounce at current levels. Why? The RSI is at its lowest it has been since November 2018. This where the RSI hit bottom for BTC/USD at that time and what followed was a long-term sustained growth period.
- More drops can also follow, right away with no bounce. Such a drop would quickly be bought up leaving a long-wick. Less probable, but completely possible right now.
Perfect time to enter the market
BitcoinBearSlayer studies the "Stock to Flow" model for pricing Bitcoin. This model does not track averages, chart patterns, Fib levels, support/resistance, nothing of the sort. The model just looks at how many Bitcoin have been mined to date and how many will be mined in the future. At any rate, using just the stock to flow numbers I made a spreadsheet with some interesting discoveries. I looked at today's price as to how it would compare to a future stock to flow value for each month from September 2019 all the way through December 2021.
Here is what he found. As of this post, the current price is around $8,240.
This makes the current price:
3.91% undervalued as of 11/14/2019
247.55% undervalued as of 11/24/2020
1,245.28% undervalued as of 11/27/2021
If the price remains around the $8K level it will become more and more undervalued until it eventually snaps back to the median stock to flow value. The same happens when the price climbs way above the current stock to flow value. It goes a few percents over, then 10%, then 15%, then 20%, then 30%, etc. until it finally crashes back to the median value. We are at the low end of the next cycle. If the current price of $8,026.94 were to be the same on 11/27/2021 it would have to jump up 1,245% just to get back to fair value. So basically any prices from $8,300 and lower are an EXTREME bargain when compared to the stock to flow model. For example, the price has to be over $11K by next June just to stay at equilibrium. Neither overvalued or undervalued.