Bitcoin approaches the last month’s weekly candle and traders discussing where the price of BTC will head to in short to long term. The previous weekly candle for the month of August approached by the BTC price. According to some traders, there are beliefs that the performance of Bitcoin over the next two weeks will be able to decide whether the price of it drops below $10000 again or it will be witnessing an extended uptrend.
The weekly candle of this week coincides closely with the expiration of the Bitcoin futures contracts of CME and the option contracts of Deribit. A precedent for the month of September could be potentially set especially, if Bitcoin closes below or above key levels. Technical analysts in the short term, general considers $11800 as the Bitcoins’ key levels. The chances of a deeper pullback will rise if a high time frame closes below the levels.
Possible Outcomes for Critical Weekly Close of Bitcoin Price
A close above the key level and maintaining the greenery in the monthly candle could cause Bitcoin to witness another leg up. A founding partner at Bitazu Capital, Mohit Sorout said in a tweet that a rally of $11800 would be putting the sellers to sleep. Sorout was referring to the Bitcoin’s daily chart with the help of Bollinger Bands which showed the area of interests for both the buyers and sellers.
Just a few days are left for the monthly close, and the future market is cautious. Typically, the total number of long contract holders in the futures market is way heavier than that of short-sellers. Data from Bybt displays longs represent 53.36% of the market, which shows that the traders are cautious.
Some investors believe as an alternative scenario that it could see months of low volatility before the next significant movement in price. A co-founder of 10T Holdings, Dan Tepiero, said that every price cycle in the history, took around 800 to 1,100 days to complete. Bitcoin is presently less than 400 days into the cycle, which gave an indication that BTC could range sideways for the next three to twelve months.
Some foresee an extended altcoin season if the price of Bitcoin continues to remain stagnant. The dominance index is a concern for altcoins in the foreseeable future, as it is approaching the key technical support levels. But, historically, altcoins have prospered during a Bitcoin consolidation phase.