Bitcoin (BTC) has been absolutely hammered over the past two days. In fact, some 36 hours ago, it was trading at $10,200; now, the cryptocurrency is sitting snug at $9,500.
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This dramatic sell-off, which comes after the cryptocurrency traded in the low-$10,000s for a good two weeks, has inflicted investors across the board with a newfound sense of fear.
Analyst Dave the Wave, who has been calling for BTC to fall to $6,000 for weeks, doubled down on his prediction in the wake of the crash. He pointed out that Bitcoin is currently in a descending triangle that has a breakdown target of $6,200. Youch.
Assuming you still have dry powder left, and assuming it goes this low, will you be ready to pull the trigger? pic.twitter.com/eCANwD4XZt
— dave the wave (@davthewave) August 29, 2019
However, there are some remaining optimistic. In fact, one prominent analyst, famous for his on-chain analysis, is arguing that now may be an optimal time to accumulate BTC, not sell it.
Buy Bitcoin Now?
In a recent tweet, Willy Woo, a partner at Adaptive Capital, argued that Bitcoin is currently not as bearish as some may expect, pointing out that it has just rebounded off its 128-day moving average.
While he did admit that the cryptocurrency has been “overheated” over the past few weeks, he notes that its part of BTC’s “historical personality” for it to touch the aforementioned moving average “many times during a bull market to stay grounded”.
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Woo adds that flirts with the 128-day “present good buying opportunities”, accentuating that now may be a good time to accumulate Bitcoin before its next leg higher.
Kissing the 128d MA is a very good sign. It was overheated till this. People familiar with BTC’s historic personality know that the 128d line needs to be touched many times during a bull market to stay grounded. They present good buying opportunities. pic.twitter.com/1QBo3QjtgD
— Willy Woo (@woonomic) August 29, 2019
Woo isn’t wrong. Just look at NewsBTC’s chart below, which shows that in 2017, the Bitcoin price bounced cleanly off its 128-day moving average at least four times. Not once in 2017 did Bitcoin close a daily or weekly candle under that technical level.
And if you look through Bitcoin’s price history, you can see multiple occasions where it made contact with that level and headed higher in succession.
Should history repeat, Bitcoin is likely to rebound in the coming days, then continue to gain momentum and strength in the coming weeks.
BTC Still Strong
Accumulating at current prices isn’t the worst idea, according to some other analyses. PlanB, an analyst from traditional markets that has delved down the Bitcoin rabbit hole, opined that “Bitcoin is still looking strong” per his one-month Relative Strength Index (RSI) reading.
Indeed, the current movement in the RSI chart seen below is eerily reminiscent of mid-2016, when Bitcoin consolidated after its first bull run after 2015’s crash to sub-$200 levels.
#bitcoin still looking strong … feels like mid 2016 pic.twitter.com/lddKSEETye
— PlanB (@100trillionUSD) August 29, 2019
Featured Image from Shutterstock. Chart Courtesy of TradingView.com
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