Trading room, a major outlet for crypto-related market analysis, has tweeted out a major prediction. It is claiming that unless the total market reclaims the 200 MA on the daily, we may be in for more pain.
The doomsday predictions for Bitcoin and other cryptocurrencies are out in full force after the market posted double-digit losses across the board. Trading Room (@tradingroomapp) is warning investors that it may get worse before it gets better.
Bitcoin Could Sink Further
The trading desk is claiming that the 200 MA on the daily has been broken based on total market capitalization. The market must reclaim this or else we could quickly see Bitcoin drop to $6900-7200. The trading group advised investors to place their entries around this range, moving it lower from its previous call of $7400-7600.
ABSOLUTELY MUST READ
200 Daily MA Broken for TOTAL, MARKET must reclaim by tomorrow or else 6900-7200 is likely scenario for #BTCUSD in coming days
We are removing SL for our 7400-7600 Entry & adding 6900-7200 Entry for #Bitcoin
MUST READ THE CHART COMMENTS pic.twitter.com/mVbVrEr4Pe
— Trading Room (@tradingroomapp) September 25, 2019
If this ends up being true, we could very well see a collapse throughout the altcoin market. A further Bitcoin drop would put the entire market at around $180B market capitalization which is currently sitting at around $219B. The trading desk claims that the support area for total market capitalization is around the $178-182B zone.
However, other analysts have not been so quick to call for a further price collapse. There has actually been some dispute over whether Bitcoin has invalidated the daily 200 MA which has held strong for months now. Yesterday, Bitcoin briefly fell below $8,000 and even touched $7,800 or so before bouncing back up to $8,400. As of now, the number of buyers at this zone seems like it’s tapering out.
The double-digit losses come just a day after Bakkt officially launched. Many are speculating that the dump was thus a result of institutional buyers shorting the market or wanting to get in lower. A similar occurrence happened in December 2017 which saw institutional exchanges open futures market which was succeeded by the spectacular crash of 2018. However, there’s also evidence to suggest that the declining stock market also played a part in Bitcoin’s drop.
Overall, the battle is on for Bitcoin to defend the daily 200 MA indicator. If not, we could be in for some more short-term pain.
Do you believe that Bitcoin will hit the low Trading Room is predicting? Why or why not? Let us know your thoughts below in the comments.
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