Bitcoin (BTC) must reclaim $9,400 as soon as possible in order to change its bearish course, says Cointelegraph Markets analyst filbfilb.
In an update on social media on July 16, the popular trader warned that the situation facing Bitcoin was fast becoming make or break.
Filbfilb: BTC nearing end of the compression phase
“BTC Bulls need to reclaim $9400 quick sharp,” he wrote in comments on a long-term price chart.
Attention focused on BTC/USD being stuck in a compression cycle which has lasted for multiple weeks. Compression refers to a pattern of higher lows and lower highs, with a trading corridor narrowing before a breakout.
For Bitcoin, the danger lies in a potential climax occurring in bearish territory as denoted by the Bollinger Bands volatility indicator.
Bollinger Bands consist of an upper and lower band surrounding a middle band and have historically captured both bullish and bearish moves by Bitcoin.
BTC/USD chart showing compression cycles. Source: filbfilb/ Twitter
“Coming to the end of consolidation/compression now.. doing so below the middle of the bbands is not typically a good sign,” filbfilb continued.
Should $9,400 reappear, he added, the outlook would be open to reinterpretation:
“Reclaim that level and happy to reconsider bearish bias.”
Eyes on $8,700 and below
As Cointelegraph reported, looking ahead, bearish scenarios now focus on levels below $9,000 — $8,700 and $8,200, the latter representing Bitcoin’s 20-week moving average.
“Bitcoin continues the slow bleed down towards 9k,” filbfilb told Telegram trading channel members earlier Thursday.
“Was pretty bad losing the $9,250 level; the weekly support and bottom of the range at $8,700 is looking increasingly likely to be tested.”
$9,000 support held up in early trading, with press time levels at around $9,080. BTC/USD remains vulnerable to stock market moves, with a fresh rout more than capable of sending the pair towards bearish targets.