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Saturday, August 15, 2020

Bitcoin Price Must Now ‘Reclaim $9,400 Quick’ to Stop Bears — Trader

Bitcoin (BTC) must reclaim $9,400 as soon as possible in order to change its bearish course, says Cointelegraph Markets analyst filbfilb.

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In an update on social media on July 16, the popular trader warned that the situation facing Bitcoin was fast becoming make or break.

Filbfilb: BTC nearing end of the compression phase

“BTC Bulls need to reclaim $9400 quick sharp,” he wrote in comments on a long-term price chart. 

Attention focused on BTC/USD being stuck in a compression cycle which has lasted for multiple weeks. Compression refers to a pattern of higher lows and lower highs, with a trading corridor narrowing before a breakout.

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For Bitcoin, the danger lies in a potential climax occurring in bearish territory as denoted by the Bollinger Bands volatility indicator.

Bollinger Bands consist of an upper and lower band surrounding a middle band and have historically captured both bullish and bearish moves by Bitcoin.

BTC/USD chart showing compression cycles. Source: filbfilb/ Twitter

“Coming to the end of consolidation/compression now.. doing so below the middle of the bbands is not typically a good sign,” filbfilb continued.

Should $9,400 reappear, he added, the outlook would be open to reinterpretation:

“Reclaim that level and happy to reconsider bearish bias.”

Eyes on $8,700 and below

As Cointelegraph reported, looking ahead, bearish scenarios now focus on levels below $9,000 — $8,700 and $8,200, the latter representing Bitcoin’s 20-week moving average.

“Bitcoin continues the slow bleed down towards 9k,” filbfilb told Telegram trading channel members earlier Thursday.

“Was pretty bad losing the $9,250 level; the weekly support and bottom of the range at $8,700 is looking increasingly likely to be tested.”

$9,000 support held up in early trading, with press time levels at around $9,080. BTC/USD remains vulnerable to stock market moves, with a fresh rout more than capable of sending the pair towards bearish targets.



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