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Is BTCUSD Due For a Downtrend?

October 22, 2018 at 19:09 by Arathur Stephen

Is Bitcoin digital gold? The CEO of Genesis Global Trading, Michael Moro was asked that age-old question during the CNBC Fast Money show hosted Melissa Lee.

Is Bitcoin Digital Gold Yet?

In his response, Moro highlighted that of Bitcoin’s long-standing positive features is its non-correlation with capital markets, as the crypto asset hardly moves off the back of the price action seen in global stock markets. He added that although pure non-correlation is a characteristic seen with the value of physical gold, Bitcoin’s classification as a legitimate form of digital gold is still up for debate.

The CEO was quoted as saying:

Whether Bitcoin is ultimately a digital form of gold, I think that question is still very much an open-ended question. I do think that investors believe that it is digital gold and use that as a case to buy the asset, but it needs to prove itself as digital gold.

Moro further added that the leading cryptocurrency is most likely to gain its status as digital gold based on the fact that there is a strong movement behind its usage as a digital store of value.

Back in August 2018, the investor gave his own speculation on the future price action of the ever so volatile crypto market. During the CNBC Fast Money show, he forecasted that “we are more likely to see Bitcoin price at $10,000 rather than $5,000”. This time, Moro has doubled-down on his earlier Bitcoin prediction.

In his final statement on CNBC show, he said:

The last time I was on this show, I said that we were more likely to see $10,000 in Bitcoin than $5,000. So far, I’m not wrong. So I am still sticking by that prediction. Because of what we are seeing in the ebbs and flows on the loans side… I have that confidence that I don’t think we will see $5,000 flat. [Nevertheless,] timing wise, I am not too sure when this is going to happen.

Moro says he believes the price of Bitcoin will head back to $10,000, but he refrained from providing the specific dates or price targets. However, some institutional investors are in the same school of thought with Moro that his prediction is not out of the realm of possibility based on the fact that more institutions are getting involved in the crypto industry on a week-on-week basis.

Bitcoin Price Outlook

Bitcoin started this week on the same note it ended last week. On Sundays, the daily trading volume of the cryptocurrency exchange market drops usually, as professional traders and institutions investors hold back from engaging in major trades throughout the weekend.

Hence, a lot of traders are often optimistic that the volume of Bitcoin would recover the next day, expecting a short-term price movement between the range of $6,500 to $6,800. However, the price is currently moving within a sideways range.

Trade volume has dropped to $3.2 billion after it spiked last week to $7.4 billion. According to the data from CoinMarketCap, market capitalization has decreased by nearly $2 billion and now moves between $111 billion and $113 billion.

At the moment, Bitcoin price is trading slightly around the $6,500 level, almost unchanged from last week range. Sellers have been unable to push the price below $6,000 for many weeks as buyers pull in to stabilize. However, buyers lack sufficient momentum to push for price recovery beyond the reach of the bears.

BTCUSD Technical Analysis

Bitcoin price entered into another sideways trend after October 15 bullish rally. The price declined to the low of $6,571 and started a range bound movement above the $6,500 price range. Today, BTCUSD pair is still trading above the $6,500 price level.

The 12-day Exponential Moving Averages (EMAs) and the 26-day EMA are trending sideways and are horizontally flat showing that the price is moving in a sideways trend. In addition, BTC price has been unable to break out of its consolidation. The $6,500 price level had been a strong resistance to the price Bitcoin.

Nevertheless, the Relative Strength Index (RSI) period 14 is level 50 also shows that the price is in a sideways trend zone. The number 1 digital coin is likely to continue its sideways trend, however; it is due for a downward trend.

BTCUSD is bearish on the short-term trend. The BTC price is below the EMAs thus indicating that the price is dropping. If the price declines below the $6,500 price level the Bitcoin price is most likely to test the support zone.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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