John Kolovos, Macro Risk Advisors chief technical strategist, recently stated that the crypto market might go down. Now, that BTC is trading over $10,000 again, has the price stabilized for good?
In an interview with Bloomberg, Kolovos discussed BTC’s price and the coin’s future. The main takeaway is that Bitcoin is “going through a corrective process.” Kolovos emphasized the word “process”, ensuring the audience that he is not talking about a “trend reversal”.
According to him, BTC is undergoing a classic ABC correction. He believes that BTC’s price is on the road to stabilization. However, the market might plunge again before correcting itself. This is due to the fact that there is still present the so-called double top formation. Besides, the Relative Strength Index still has room to drop before a re-bounce.
That said, Kolovos believes that the double top will be reached at $8,500 to $9,000. This estimate is higher than that of Bloomberg ($7,000). However, he invokes such factors as price congestion (there is a lot of in the current range). And the long-term character of the trend. Besides, he points out that there are buyers at lower levels than $8,000-$9,000
He also noted that the bulls are definitely driving the market up, as BTC is above the 50-week moving average.
“Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500,” he concluded.
So is it too late?
It is noteworthy, that this interview was given solely four days ago. In the fast-paced crypto world, this is a long time. Now, BTC is trading at $10,410.99.
Does it mean that it is too late to buy the futures? Or is the market still going to experience “mood” swings? This question remains actual as no new data has emerged pertaining to the double top and the RSI. And that is important as per Kolovos both are indicative of BTC’s future performance.
Recently, Altcoin Buzz that BTC has seen the second-largest 1-hour green candle of 2019. Also, US House Representative Kevin McCarthy has expressed his support for BTC. He likes it because of its decentralized nature and security. A well-known BTC bull Novogratz has also suggested that the price of BTC will continue to go up.