Odaily Frontline | Analyst: Bitcoin will return to $20,000 after a pullback, and $8,500 is a good buying opportunity

This article comes fromBitcoinist, original author: Eustace Cryptus

Translator | Nian Yin Si Tang

This article comes from

• , original author: Eustace Cryptus

Translator | Nian Yin Si Tang

Cryptocurrency analyst John Kolovos recently told Bloomberg TV that the price of Bitcoin will drop to $8,500 before rebounding sharply.

• Bitcoin at a four-digit price is worth buying
  

Earlier this week, Macro Risk Advisors chief technical analyst John Kolovos spoke to Bloomberg Television about bitcoin's price action and recent congressional and Senate hearings on Facebook's cryptocurrency project Libra. According to Kolovos, bitcoin prices are “going through a correction process.” He emphasized that this is a "process" to clarify that he does not think Bitcoin is undergoing a trend-changing correction.

Kolovos explained that Bitcoin price is currently undergoing a classic ABCD correction and finding support around $9,000. Bitcoin prices are almost on the verge of stabilizing, but before that, Bitcoin will experience a sharper downside, followed by a sharp consolidation, Kolovos said. Currently, Bitcoin price is finding support at the 50-day moving average, but the formation of an M top (double top) may continue to attract bears. Furthermore, the RSI has room to decline before Bitcoin experiences a healthy rally. During the bull market of 2017, when the RSI reached 40, it proved to be a reliable rebound point to attract buyers.

Why buy at $8500 instead of $7500?

When asked why Bitcoin’s double-top price would be between $8,500 and $9,000, rather than Bloomberg’s prediction that it could fall to or below $7,000, Kolovos offered the following:

1. The current price range is very congested;

2. The mainstream trend on the long-term chart is very strong, and reverse trading is not recommended;

• 3. There are lower priced buyers between $9000 and $8000.
  

"Classic technical analysis tells you that this pattern is suggesting a return to the old highs, around $20,000. So the long-term trend is telling me to buy on a pullback in bitcoin, which is what I think should be at $8,500 The reason to buy left and right,” Kolovos said.informationIt's going to be a "turbulent" weekend

At press time, the price of Bitcoin is above $10,000, trading in a range of $10,300-$10,600. Since the beginning of this week, the price trend of Bitcoin has been relatively volatile, and there have been previous