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So, where should bitcoin be at the present time, exactly? This appears to be a heavy argument that analysts are having. They are split right down the middle when it comes to deciding if bitcoin should be bullish or bearish.
Bitcoin Is Bearish, but Perhaps It Should Be Higher?
The currency has not had a good month in September. While most of August saw the asset climbing up towards the $12,000 mark – the currency ultimately hit $12,400 by the time the month ceased – bitcoin has spent the last few weeks in the doldrums, falling way back into the low $10,000 range and ultimately hitting $10,400 when nobody saw it coming.
It’s unfortunate that bitcoin cannot seem to make up its mind, though it looks like both $12,000 and $11,000 are serving as hardcore resistance levels at the time of writing for the world’s number one cryptocurrency by market cap. Recently, the asset managed to break the latter mark, but immediately fell back to where it was and lost $600 off its price.
So, how should bitcoin be behaving? What should it be doing at press time, and where does it fall on the financial ladder? Many traders and analysts have different ideas about where it should be going and what guise it should fall under for the time being. Mike McGlone – an analyst at Bloomberg – recently claimed that bitcoin should be trading for approximately $15,000 per unit at this time, given that its overall hash rate has increased heavily in recent weeks and that the number of bitcoin addresses open throughout the world has exploded.
In addition, everyone appears to be trading bitcoin at all hours. People now view it as a form of “digital gold,” which is what it’s been touted as since it first stepped onto the scene. Many now view it as a hedge of one’s wealth – a tool for keeping an individual safe during times of economic strife, and yet one can’t help but see that bitcoin isn’t particularly high right now.
Despite everything going against him, McGlone says he’s not giving up on bitcoin, and he’s looking to remain bullish and await the shift in bitcoin’s sudden price behavior. While he’s always aware that it could come crashing down with little to no signs, he believes that this likely won’t happen. He states:
Our graphic depicts primary on-chain metrics that would need to reverse for bitcoin to not keep appreciating in price – the hash rate and active addresses.
Not Taking a Firm Stance
Other analysts – such as Tone Vays – are taking a more lenient approach, and claiming that whatever bitcoin does, there are scenarios that traders can take advantage of. In a recent discussion, Vays said:
If we break down, I think $9,000 is a good ‘buy the dip.’ What is my worst-case scenario low point if we break down? My worst-case scenario is $7,000.