Bitcoin Buyers Continue Stacking Up Around $8500 Price Level
$8500 looks to be the magic price point many buyers are waiting to acquire some shiny new Bitcoin (BTC). However, it’s looking less likely that it will dip low enough to reach this support level.
Bitcoin’s rapid green candle from the $10,100 mark to $10,500 caught many by surprise. After all, some $52M in shorts were liquidated on BitMEX as a result. However, according to Black Diamond Researcher, most buyers are still clustering around the $8500 price level hoping to fill their orders — and they haven’t seemed to budge.
Although technical traders have differed on where in particular this future ‘buy zone’ for Bitcoin is, they all seem to agree that it is under $9000. Recently, a few traders opined, calling for $8900-$9000 as being the ‘buy zone.’ However, it seems that actual buyers are not taking any chances, and have been stacking up their orders even lower.
I’m expecting the same, Cred. The big demand at $8500 is still there, supporting your idea that a wick will occur.
pic.twitter.com/05H3M4QpbT — Trading Surfers (@TradingSurfers) August 26, 2019
The strong support under the $9000 price is asymmetrical given that Bitcoin is now well above $10,000. This could possibly be an indicator that buying pressure is still weak and that the recent rise was just an effort to squeeze shorts before another leg down. In this choppy market, daytraders should be extra cautious.
Bitcoin has proven itself especially resilient in the past few months, potentially acting as a hedge against economic calamity. In fact, the leading cryptocurrency has proven itself to be more responsive to world events, like Trump’s trade war, than gold. This bodes well for the cryptocurrency’s aspiration to be a global ‘store of value.’
With Binance’s American ban set to go into effect in mid-September, Bitcoin could see more money pour into it as many convert their holdings to BTC. Bitcoin’s next halving is also scheduled to occur in May of 2020, and there are many fundamental indicators which could create something of a ‘perfect storm’ for the leading cryptocurrency.
Do you agree that Bitcoin will outperform expectations by the end of 2019? Let us know your thoughts below in the comments.
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