Will BTC hit $12k this week

Will BTC hit $12k this week

BITCOIN prices hit a rough patch overnight on Wednesday after a mass selloff struck off almost $1,000 from the cryptocurrency’s price tag. But do analysts think bitcoin can rebound back towards $12,000 this week?

Bitcoin fell by $737 on its midnight opening price as of 5.26pm GMT, according to market tracker CoinMarketCap.

Cryptocurrencies across the board were exchanging hands at marked down prices, and bitcoin was 9.31 percent down in the last 24 hours. 

The virtual token struggled to secure certain ground today, but investors were still relieved BTC was up more than 74 percent on its February 6 low.  

Daily Bitcoin discussion boards meanwhile indicate that BTC owners are holding out on the market correcting itself after plummeting earlier this month.

One member of the online bitcoin community, Chewtoy, said online: “As for me, I'm holding my short indefinitely from $11,700. 

“While I'm expecting some serious chop between $10,000 and $11,300 over the course of the next few days, my ultimate personal bias is toward an end to the short-term recovery and a continuation of the medium-term bear trend.”

Will bitcoin bounce back to $12,000?

According to CoinDesk contributor Omkar Godbole, the bearish market is trading below its December and January highs, but the outlook is for prices to go up.

Mr. Godbole said the current trend line resistance stands at $12,300 and the five-day and 10-day trends are in favor of more bullish market behavior.

But the crypto expert was not convinced traders can expect the same kind of performance based on bitcoin’s weekly chart.

He said: “The weekly 10-day moving average has adopted bearish bias – downward sloping.”

The outlook is that bitcoin will remain on track towards a longer-term inflection point of $12,300, but the token can still very much swing either way.

If traders regain confidence in the token enough to boost the markets, Mr. Godbole said it would not be inconceivable for bitcoin clawback significant gains.

He said: “A daily close (as per UTC) above $12,300 would signal the bear market has ended and add credence to the bullish Doji reversal. 

“In such a scenario, BTC could revisit $17,178 (January 5 high) and could possibly break higher towards the record highs around $20,000.”

However, on the downside, another strong BTC sell-off could further plunge prices below $10,000, to levels not seen since the January last month.

The weekly 10day moving average has adopted bearish bias – downward sloping

Omkar Godbole, CoinDesk

In this scenario, Mr. Godbole said the sell-off would be “more intense” if bitcoin was rejected at its inflection point.

CNBC’s "Fast Money" trader Brian Kelly agreed on Tuesday that bitcoin was headed for the $12,000 mark thanks to wider crypto-friendly attitudes from government regulators.

Mr. Kelly argued that as prices surged to $11,700 yesterday, the token stood a good chance of climbing even higher.

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