The price of Bitcoin (BTC) should return to USD 9,400 as soon as possible to change its downward course, says filbfilb, an analyst at Cointelegraph Markets.
In a social media update on July 16, the popular trader warned that the situation facing Bitcoin was fast becoming a decisive factor.
Filbfilb: BTC nearing end of compression phase
„BTC bulls need to get back to the $9400 mark quickly,“ he wrote in comments on a long-term price chart.
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The focus was on the BTC/USD pair stuck in a compression cycle that has lasted several weeks. Compression refers to a pattern of higher minima and lower maxima, with a trade corridor narrowing before a breakout.
For Bitcoin, the danger lies in a potential climax occurring in bearish territory as indicated by the Bollinger Bands volatility indicator.
Bollinger Bands consist of an upper and lower band that surrounds a middle band and have historically captured Bitcoin’s upward and downward movements.
„Getting to the end of the consolidation/compression now… doing it below the middle of the bands is usually not a good sign,“ continued filbfilb.
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If the USD 9,400 reappears, he added, the picture would be open to reinterpretation:
„Get back to that level and be happy to reconsider the downward bias.“
Eyes on USD 8,700 and below
As reported by Cointelegraph, looking ahead, bearish scenarios now focus on levels below USD 9,000 – USD 8,700 and USD 8,200, the latter representing Bitqt 20-week moving average.
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„Bitcoin continues the slow bleeding towards 9k,“ filbfilb told members of the Telegram trading channel on Thursday.
„It was pretty bad to lose the $9,250 level; weekly support and the bottom of the $8,700 range seems increasingly likely to be tested.
USD 9,000 support was held at early trading, with press time levels around USD 9,080. The BTC/USD remains vulnerable to stock market movements, with a new route more than capable of sending the pair towards bearish targets.