The Krown channel has released an analysis of what is in store for Bitcoin: a test of the $79,000 mark and then a recovery. The analyst at Krown envisions BTC dipping to that figure over the next few days before resuming its upward trajectory, with an eye on $100,000 before the year is done.
Technical Correction Levels and Key EMAs
Already, the cryptocurrency has hit a number of correction targets across various timeframes, from the 4-hour to the 12-hour chart, says the host. For example, on the daily chart, BTC has closed below the red 5-EMA and yellow 21-EMA; one would normally read that as a sign of a more thorough correction. What the analyst sees as the make-or-break support zone is the green 55-EMA, currently at $79,000, the area where Bitcoin should bottom out locally.
There is no need for investors to panic over this sort of corrective action, the analyst notes. It is a healthy development for the market. The Krown channel uses the exponential moving averages (EMAs) to provide structure to the pullback and set the stage for the next support level.
What Happens at $79,000? Outlook for the Next Move
Should Bitcoin reach $79,000, the Krown analyst believes that will mark the end of the correction and usher in a new bullish trend. A break below is not ruled out, which could see the price go as low as $75,000, but with the way things stand and what the data show, it is not likely.
Then there is the matter of the ‘golden cross’, when the shorter-term moving average crosses above the longer-term. Past statistics indicate a 3.2% lift in price over the following 30 days after such an occurrence. Given that history, the view is that BTC will rebound from $79,000.
Long-Term Targets and Investment Strategy
For the medium term, the host is forecasting a resumption of the uptrend by late October to the tune of $90,000. And if the market holds its structure, $100,000 is a target the analyst deems realistic for the rest of the year.
As for how to position oneself, the recommendation is to buy in at about $80,000. It is solid support and an entry into the coming bull phase. The takeaway is that this is par for the course in Bitcoin’s cycles, an opportunity to be seized rather than something to fear.
This article reflects the channel author’s opinion and is not investment advice.
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Source — Krown: https://www.youtube.com/watch?v=IJN6hlhJ8ZY
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