Bitcoin (BTC) price is currently trading over 2% in the red on a weekly chart as technicals point to a continuation in the downtrend in the coming days and weeks.Fundamental analysis: Can Bitcoin stage a rally?
Bitcoin price recorded some sharp price swings over the last week, keeping investors alert. The price action is hovering around the $10,000 mark after failing to keep its head above the $12,000 handle.
This week could be very significant for the world’s number one cryptocurrency, according to George Ball, a former CEO of Prudential Securities. Ball, now heading Sander Morris Harris. referred to Labor Day (Monday, September 7) as a likely turning point for Bitcoin adoption and investment.
He expressed his expectations that the BTC price will soar after Labor day, noting that current global markets are trapped in the “summer doldrums,” and investors are anticipating “a spark” that he thinks will happen this month.
Concerns among crypto investors increased this week following a sharp sell-off in equity markets that sent the S&P 500 to its first weekly loss in six weeks while the Nasdaq recorded its worst weekly results since March.
On Friday, Bitcoin plunged below the crucial $10,000 mark for the first time since late July, harming a number of Bitcoin investors who argued that Bitcoin is turning into a safe-haven asset like gold.
“Bitcoin’s volatility is a key characteristic as an asset class,” Paolo Ardoino, CTO at the bitcoin and cryptocurrency exchange Bitfinex said.
However, in spite of recent volatility and price swings, many Bitcoin bullish investors are still optimistic about the cryptocurrency’s prospects regarding this week.Technical analysis: Bitcoin price threatening to break lower
Unlike analysts, technicals look less confident that the BTC price may move higher this week. Bitcoin price is trading over 2% lower this week as the sellers try to force a break and close below the $10,000 mark.Bitcoin price daily chart (TradingView)
In particular, the price action is creating a bear pennant on a daily chart, which is a bearish continuation pattern that signals that a downtrend may extend further lower after a period of brief consolidation.
In order for this pattern to be activated, the Bitcoin price action must break and close below $9,700. In this case, the measured target of a bear pennant points to $8,100. The sellers may be boosted by a daily close below the 100-DMA, which now trades at $10,278.Summary
Bitcoin had a volatile last week and technicals are signalling that the bearish form may continue for the world’s largest digital asset, although certain investors believe that the world’s largest digital coin may start to gain after the Labour Day.