KEY POINTS

  • Analysts said Bitcoin is in a period of consolidation
  • Without a price spike, a bearish divergence will continue to develop for BTC
  • Despite more and more bearish outlook short-term, the long-term outlook remains bullish for Bitcoin

Whatever direction Bitcoin decides to go, many analysts are predicting high volatility in the entire crypto market.

Bitcoin continued to reject $10,000 and had stayed within the $9,200 to $9,900 range in the last 20 days. Since the last rally above $10,000 on June 1, Bitcoin has not breached past it and traded sideways, signaling lower volatility. 

Analyst Crypto Birb said this is a period of consolidation and a “monster move” might happen soon.

"Consolidating for 1.5 months already. This is going to be a monster move for $btc soon," he tweeted.

This "monster move" can be downwards, however. Multi-asset Fund Manager, Charlie Morris said the lack of interest would fail to hold up the price, putting the value at $7,000.

Another prominent analyst going by the name of “Cold Blooded Shiller” said without a price spike, a bearish divergence will continue to develop for BTC, confirming that we have witnessed the top in the short term.

Analyst Pentarhudi said on TradingView that Bitcoin’s chart is increasingly looking like a triple top or a range look. Breaking below $8,000 will trigger a revisit to $6,000. 

Historical IV almost completed by PentarhUdi on TradingView.com

With the mining difficulty about to increase, the cost of mining will once again increase for Bitcoin, putting pressure on the miners to sell more Bitcoins than they should.

Despite the bearish short-term outlook, many analysts are bullish in the long term. JPMorgan praising Bitcoin’s “staying power” after the March 12 crash is one such signal, according to observers. 

Jason Williams, partner at Morgan Creek, argued Bitcoin will hit $20,000 by October. 

Additionally, many previous bullish predictions are still in play. Notable among them is the research of Bloomberg that explains how Bitcoin will reach $20,000 by the end of the year. According to the report, the Central Bank easing and the current pandemic would accelerate Bitcoin’s maturity as an asset class. The sentiment is supported by the many institutional investors buying 25% of all newly-minted Bitcoins in 2020.

According to Crypto Fear and Greed Index, Bitcoin sentiment has entered the “fear zone” signifying that investors have a cautious outlook on the market. Bitcoin entered Monday at $9,341 and continued to fall. Failure to defend $9,100 would signal a revisit to $8,900 level.

bitcoin_large Bitcoin is the most known cryptocurrency. Photo: Getty