As expected, Bitcoin has rebounded from the slightly bearish trend which many fear will be the beginning of a drastic reduction in prices.
Now, the cryptocurrency is already testing the $14,000-$14,500 price action level which has left a lot of people wondering what’s next.
On June 24th, 2019 Bitcoin was at a high of $12,375.81 and the price when into a slightly bearish trend which signaled a major trend reversal.
Prices bottomed out at $9,796.91 on July 2nd as proof that the testing of the lower support levels was underway.
This reversal is exactly what the prices are trying to achieve at this point.
Cryptocurrency prices are as volatile as they are always seeking to find a price action point which can either make the asset price to form a trend or two range in either direction.
We are looking at one of the major price points which we know will be the beginning of a major run; though a minor retracement is to be expected.
Based on the bottom support price of $9,796.91, if you check the 38.2% rebound price it comes to $13,539.32 which hasn’t happened yet.
It will surely occur in the next couple of days due to increased demand for the currency and the activities of the summer Bulls.
It is important to note that this is not the final price action point which will herald the increased prices of the cryptocurrency which we all know will come.
Price momentum will swing when it crosses the $14,000-$14,500 price range as the heavyweights (whales) will seek to make sure that the currency does lift off.
While “whale trading” isn’t such a good idea, it is definitely one of those factors which will cause a huge splash for the 50% price action point from $9,796.91.
Since the beginning of the new Bitcoin bull run which is at its early stages, we haven’t yet seen the whales enter the market as they always cause huge spikes in prices and their reversals.
Bitcoin will start spiking in or around that price range due to increased volatility and the activities of these guys who love to cause a splash everywhere they go.
The recent price increases have been primarily caused by institutional investors who have been making sure that they continue to pump fiat money into the major exchanges.
The next phase of the institutional investors’ moves will be to either to conduct ICO’s for themselves or to partner (or use) with existing cryptocurrencies in order to take a stake in the crypto-verse.
If one combines that with the activities of the whales who don’t take any side (neither bulls nor bears), you’d see that the $14,000-$14,500 price mark which many are seeing as resistance is actually a support.
The major issue with most of the pundits who still see bearish patterns is that they only tend to understand price actions of assets from the perspective of “now” rather than the perspective of “later”.
Make no mistake: $14,000 is definitely support to much higher heights!
What do you think? Is $14,000 a support (or resistance ) for Bitcoin’s current prices? Please let us know in the comments below!