After temporarily dipping below $10,000 in the last few weeks, the bitcoin price is currently hovering around $10,100. It had attempted to break above $10,500 but ultimately is staying just above $10,000 for the foreseeable future.
While this lack of price rally might seem discouraging, it has been suggested that the outlook for bitcoin would be even worse should it have fallen below $10,000.
Furthermore, it was suggested by popular trader BTC_Jacksparrow, that the immediate changes in the bitcoin price will determine whether the token is in a bull run or not. According to him, a further price drop at this point could indicate trouble.
“If $BTC is in a bullish trend, this is a level of support that should hold. Historically at pullback levels that – in a bullish market – always held. If not – we are in for far more trouble, but I think the odds for holding support and bouncing are good,” he said.
His theory is that should the bitcoin price fall below the 128 days moving average for a longer period of time, a significant price decline will start to set in. This has been seen a number of times in the past such as 2014, 2015, and 2018.
From the opinions of some, bitcoin is currently on a bullish path. This is based on the fact that the US dollar has shown signs of weakness in recent times. Should the bitcoin price remain above the ‘green’ area of $8,850-9,300, it is deemed to be on a bullish path. However, it is imperative that the price not dip below this level lest it approaches a price of $7,400.
On the flip side, if bitcoin is able to break above $11,800 then it is more realistic that the price might reach and exceed $16,000.
The current market situation is similar to that of 2016 which led up to a significant bull run. Thus, the next few months will be instrumental in determining whether bitcoin will soar to great heights or see another decline.