For the past few months, we have seen little to nothing happening with the price movement on the Bitcoin cryptocurrency. Altcoins have on the other hand being surging and making new highs.
However, that is all about to change soon as the Bitcoin price continues to compress, gradually getting ready for a massive move in the coming days.
In this Bitcoin analysis, I will be talking about this coming price surge, what price levels I will be watching, and where I will be expecting the price to get to for the bullish breakout scenario and the bearish dump scenario.
Bitcoins Final Price Compression Stage
In the coming days, I expect to see the price compression in Bitcoin to be completed and for momentum to begin reentering the market in preparation for a price breakout or price dump.
For a price breakout to the upside, I do not expect to see a huge move because there is a lot of resistance (long term and short term) that might prove to be difficult to breakthrough.
So, my target level for a bullish move would be the $10,000 price region. And a bounce off that region will only put the price back into the ascending triangle we have been trading in for the past few weeks.
A Bearish Crash Could Lead To More Than 30%-50% Dump In Bitcoin
While a bullish Bitcoin breakout currently as a very limited upside, a bearish crash on the other could lead to Bitcoin price entering a free fall that would push the price down to the $6,000 region or even lower.
The most important level I will be watching out for the Bitcoin price to find support is around that long term base channel of the converging triangle. Bitcoin has been generally trading within this larger converging triangle since the beginning of this year.
The probability of price getting to this level and then bouncing off of it is pretty high and I believe once that bounce occurs, we might see the Bitcoins bullish trend return and finally push the price above the $10,000 region
What Does This Mean For Altcoins?
Bitcoin currently controls more than 62% of the cryptocurrency market meaning no matter what the price does, it will have an adverse effect on the altcoin market.
The most favorable outcome for the altcoin market is a bullish breakout of the Bitcoin price. This bullish move on Bitcoin will drive the altcoin market higher.
However, if Bitcoin’s price were to crash, there is a high probability it would take the whole altcoin market down with it into a downtrend. This simply means that we will start seeing altcoin give back most of the gain they made during this altcoin market boom.
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