One of the trader/analysts, Tone Vays predicted that Bitcoin’s very close relationship with the stock market may get it stuck in the $6,000 to $10,000 range until the year 2021.
Vays aforementioned there are many reasons, together with a non-positive economic forecast, that led him to stay to his previous value prediction that BTC price won’t exceed $10,000.
“Like I’ve been saying for months now, I have no reason to walk away from my prediction early in the year that Bitcoin is going to get stuck between $6,000 and $10,000 for the majority of this year,” he said throughout a YouTube live stream.
After reversing gains from previous days, Bitcoin visited the $8,900 territory for the second time this June. the value has bounced since and continuing trading within the $9,200 territory as of present.
The violent price movement has liquidated $23.9 million longs and $6.2 million shorts on cryptocurrency exchange BitMex.
The price crash happened on the heels of the positive rumor Paypal Holdings will enable Bitcoin purchases on PayPal and Venmo, effectively giving 365 million users access to cryptocurrency.
Early this year, reports surmised that the crypto markets, Bitcoin, specifically, is decoupling from the stock exchange, suggesting the world’s 1st cryptocurrency wouldn’t behave within the means the market will and wouldn’t react on macro influences that have an effect on the stock market all the time.
All these changed on March 12. because the world decided that the pandemic would last long, investors liquidated their stocks, and Bitcoin, for money and tissue paper. Bitcoin remained related to significantly with the S&P 500 since then. These movements have led Vays to his conclusion.
Currently, Bitcoin’s RSI stands at 46.31. Vays aforementioned a notable divergence happened once the RSI poor below a long-run trendline despite higher Bitcoin prices. Ultimately, the analyst mentioned the potential low is within the $7,000 area with the RSI flashing around 30. an RSI below thirty could be a signal that the asset is oversold.
BTC predictions are aiming to be tested as June ends. However, whether or not analysts are bulls or bears, all of them conceded that Bitcoin are going to be experiencing high volatility really soon.