Bitcoin (BTC) is trading slightly above $8,200 after losing about 2% in value since last week, when BTC was hovering around $8,400.
BTC experienced a substantial dump earlier in the month, when the price crashed by 10%, from $8,800 to $8,000.
Following a number of lower highs, Bitcoin now seems to be in a short-term downtrend, with the price dropping below its 200-day EMA.
Will the price recover back to $10,000 and above? If so, when?
Let’s take a look at Bitcoin’s chart.
As you can see from the chart above, BTC is now back to trading below its 20-day EMA, 50-day EMA and 200-day EMA. The price was swinging between the 20-day and the 50-day EMA during early to mid-September. However, since the last week of the month, we saw the price finally closing below all EMAs.
Last week, I stated Bitcoin should be bouncing back after the drop but we might have to wait for a few more weeks while it consolidates between $7,000 and $9,600. It seems we’re going on that direction.
BTC is now trading above the key $8,000 and I argue it will keep trading above during this next few days, as the coin is above key volume profile levels.
The current Bitcoin trend
As history tells us, BTC is prone to huge drops between 30% and 40%, even during bull seasons. Hence, I don’t advise to fight the trend, but to always surf it for as long as possible. Hopefully, within the next three to five weeks, we will see a major reversal after a period of serious accumulation by ‘hodlers’.
Volume has dropped from a peak of $27 billion earlier in the year to more than $15 billion now, although it’s currently on a positive trend towards $20 billion.
Bitcoin’s market dominance has also slightly decreased about 2%, since early October,