Are the Bitcoin Bears Out of Hibernation?

The outbreak of Corona virus originally provided a positive effect on the cryptocurrency market, with Bitcoin’s value rising about 30% since the start of the year thanks to the extended closing of the China’s market and mining difficulties as reported by Forbes. However, Bitcoin’s inability to close above the key resistance level of $9,500 recently seems to signal an impending bear market.

According to Bloomberg, despite Bitcoin managing to breach the $9,600 point in the past three days, the struggle continues for it to close above the resistance levels of $9,500. This is because the data indicates BTC being in the overbought region near the point of its previous dip which happened in mid-January.

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Image Source: NewsBTC

The multiple resistance at the $9,500 level is portraying an eerily similar pattern that Bitcoin had in early 2018 when the price plunged from $11,500 and resisted any attempts to break away from the $9,500 level. as prices remained within the $6,000 to $9,500 range for about seven months. Assuming the current price trend follows a similar trend as BTC in 2018, price rejection at $9,500 may be the start of a bear market.

In addition to that, renowned cryptocurrency analyst, HonHairs, tweeted recently that Bitcoin’s value will plummet before achieving a stable liquidity region. This opinion is shared by fellow cryptocurrency analyst TeddyCleps, who mentioned in a tweet that a substantial dip in Bitcoin’s price is looming thanks to its failure to post a higher high during the latest price rally.

Take your trades on VHCEx Contracts and short the market if you agree with the views of HonHairs and TeddyCleps. Or if you think the bull run has yet to meet its intended forecast, go long and enjoy the rally.

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