

By Pierre-Alexandre

October 7th, 2019

Bitcoin Fails to Drive Upward Momentum, Analysts Share Mixed Views for BTC Price Movement

If Bitcoin buy pressure does not break the $8,200 levels, some analysts will expect a further dip in the Bitcoin price - around $7400 or $7000 support levels - before it sets itself for the upward journey.

The first week of October 2019 has ended on a pretty flat note for Bitcoin investors. Bitcoin has been witnessing major selling pressure around $8000 levels by the end of September.

Last week, the Bitcoin price started gaining momentum initially moving above $8450 levels. But as it failed to breach the crucial resistance of $8500, Bitcoin lost the momentum heading back downwards.

As we can see from the chart, the Bitcoin price has been spiraling downwards through last week and then recovering back +6% from $7,660 (Binance) to 8,200 in the last 24h. At press time, Bitcoin is trading at $8275 with a market cap of $148 billion.

Analysts Share Mixed-Bag of Views for Bitcoin Price Analysis

Popular technical analyst DonAlt cites a clear lack of momentum at this stage. He says that Bitcoin is showing little resistance to the downward selling pressure. The trade said that Bitcoin price can temporarily drop below $7000 levels as well.

$BTC daily:



Looks anemic to me.

Wouldn't be surprised by another leg lower wicking into the green zone.

I would be surprised by a wick into the $9000s but technically that's the next best resistance.

Currently in a tight range, without any major reaction to the lows being hit. pic.twitter.com/QPARSYTVzY — DonAlt (@CryptoDonAlt) October 5, 2019

Data released by Messari and OnChain FX shows a major drop in the daily trading volumes for Bitcoin. The drying-up of BTC trading volumes is making it more vulnerable to corrections.

By October 6, the Real 10 daily volume for Bitcoin is $210 million which is significantly less in comparison to its volume in June and August. Crypto analyst Josh Rager also expressed his concerns about the lack of trading volume.

$BTC Daily Chart doesn't look pretty



Bitcoin could be making it's way down to $7600's support with breakdown from here



Currently at support, eventually buyers can run out at this level



Buyer volume continues to decrease pic.twitter.com/E3n9cpY8Ha — Josh Rager 📈 (@Josh_Rager) October 5, 2019

Bloomberg Intelligence analyst Mike McGlone said that BTC is currently in the oversold territory and expects a trend reversal soon. He thinks that Bitcoin will act as a potential hedge against the growing signs of the worsening global economy. McGlone compares Bitcoin to being a similar asset like Gold.

Popular crypto analyst Alex Krüger said that he is NO MORE buying the argument that “Bitcoin is a safe have”.

In weeks like the current one should realize bitcoin is without a sliver of doubt neither a risk-off (safe haven) nor a risk-on asset, and put the argument to rest once and for all. — Alex Krüger (@krugermacro) October 2, 2019

The cyberpunk, freedom fighter, cocktail connoisseur and candidate for the 2020 United States presidential election John McAfee continues to remain bullish on Bitcoin for the medium term:

Ignore this drop in Bitcoin's price. I am firmly with Peter Brandt in his medium term $50k price prediction. I am also firm on my $1 mil price by the end of 2020. Stop wringing your hands! Watch GOT reruns, or woo your spouse or finish off your drug stash. All is well. pic.twitter.com/gMFdLaVkQc — John McAfee (@officialmcafee) September 30, 2019

He has just announced the beta launch of its decentralized exchange, the McAfee Dex. The platform has been deployed on the Ethereum blockchain and will automatically support all ERC-20 tokens while other unspecified crypto-currencies will be added to the final version of the Dex.

This is a beta version of https://t.co/HdSEYi9krq coming today. The beta only supports coins on the Ethereum Blockchain. Additional blockchains will be added to the full release. For now any ERC20 token or any coin based on Ethereum's blockchain may be listed by anyone for free. — John McAfee (@officialmcafee) October 7, 2019

This new McAfee Decentralized Exchange will overcome most of the restrictions applied by most conventional exchanges. McAfee DEX does not involve any verification of the Customer Knowledge Standards (KYC) imposed by the regulators. The details of the transaction are private and nothing is monitored, nothing is recorded and no restrictions are imposed" has confirmed McAfee.

"Centralized exchange is our weak point," he said. Josh is promoting decentralized exchanges that "free the cornerstone of government control: fiat currencies". Decentralized means that no one controls it, distributed means that it is everywhere and therefore impossible to stop it.

Top Recent Bitcoin and Crypto News

In its latest letter to Cipher Technologies last week, the United States Securities and Exchange Commission (SEC) reiterated its stand that Bitcoin is not a security. In its letter , the SEC said that if Bitcoin were a security, it would have raised substantial issues.





ATMs in Hong Kong have run out of money amidst the ongoing clash between protestors and the government, on the matter of maintaining Hong Kong’s independent status. The result is that Bitcoin trading volumes are reaching new highs in the country.



Reports are surfacing that some Hong Kong ATMs have run out of cash as withdrawals are accelerating with increased protests and instability.



Imagine not being able to access your own money.



Bitcoin fixes this. — Pomp 🌪 (@APompliano) October 6, 2019

Bitcoin Price Prediction: $99,000 by 2020?

The German bank BayernLB has recently published a new report stating that the Bitcoin price will touch $90,000 by 2020. The bank cites a metric called the ‘stock-to-flow’ ratio which favours Bitcoin against Gold over a period of time.



The report notes that Gold had a hard time to achieve a high stock-to-flow ratio “over the course of the millennia”. On the other hand, Bitcoin will succeed in attaining a similar stock-to-flow ration just by the time of its Bitcoin halving event scheduled in mid 2020.



Author of the research report Manuel Andersch explained that the stock-to-flow ratio helps to quantify the “hardness” of the asset. He notes that Bitcoin has “invariably been the commodity with the highest stock-to-flow ratio at that juncture which has been used as money because this enabled the best value transfer over time.”



More importantly, the author notes that the Bitcoin halving event of May 2020 has not been factored in this research. If the stock-to-flow ratio is determined considering the Bitcoin halving event of 2020, Bitcoin’s price will come somewhere close to $90,000.





In addition to the Bitcoin halving event next year, the current economic and political scenario with the ongoing trade war between U.S. and China is likely to encourage higher Bitcoin adoption.





Bitcoin Weekly Report Using Omenics’ Sentscore

Bitcoin Sentscore Metrics 24h

The Omenics’ Sentscore chart shows that the overall market sentiment for Bitcoin remained “neutral” over the last week. The Bitcoin Sentscore is on a downward trend:

The news sentiment indicator shows volatility but remains in the “neutral” zone between 4-6.





The social sentiment indicator showed some movement in the “neutral” zone early in the week. However, it has dropped back to the “negative” zone below 4.

The buzz around Bitcoin is seen crashing by the end of the week and stays in the “less content than usual” zone.





The technical chart clearly indicates Bitcoin’s weakening position slipping down from “bearish” to “very bearish” zone.