The mark of $ 10,000 is of an unconditional psychological nature, but this time Bitcoin's attempts to overcome it again coincide with the formation of an important pattern that can serve as a harbinger of a new bull rally. The situation, however, may develop in a completely different way, which will lead to a decrease in the price of the first cryptocurrency to levels of about $ 6000.
Such options for the further behavior of bitcoin are contained in the new report of the Kraken cryptocurrency exchange.
* NEW * #bitcoin IS BACK BELOW $ 10K. WHAT'S NEXT?
The price may seem psychological, but it coincides with a major multi-year pennant.
So, while $ BTC could climb, a dive to $ 6K remains possible.
Here's the view from our latest Intelligence report 👇🧵https: //t.co/LTHTCTFTtp pic.twitter.com/Z9Odt6SVWn- Kraken Exchange (@krakenfx) June 6, 2020
Analysts at the exchange pay attention to the protracted Vympel model, which dates back to December 2017. Bitcoin has been trying to get out of it since the last week of March, and although previous attempts have failed, the cryptocurrency at the same time holds its position.
If you succeed in breaking the resistance and the price of bitcoin rises above $ 10,500, this could mean entering a new bullish cycle. However, if growth from the current position does not happen, a scenario is likely in which the cryptocurrency will test the support level in the region of $ 6,200.
The authors of the report also draw attention to an interesting regularity that they identified as a result of observations of the bitcoin mempool since 2016.
According to them, the number of unconfirmed transactions serves as a useful indicator of the volatility of the first cryptocurrency. As a rule, an increase in their number precedes an increase in market volatility.
Analysts recall that on May 21, the average 7-day mempool size reached its highest value since the rally of late 2017 / early 2018. This suggests that in the coming weeks, if historical trends continue, we will again see increased volatility.
