Once again, Bitcoin has flatlined after rallying to $9,400. The cryptocurrency did not experience significant change, despite the large movements in the stock and important metals market. A notable fund manager said the cryptocurrency should maintain $8,800 moving forward.
Fortunately enough, there are fundamental, on-chain, and technical indicators hinting that the asset will do so in the coming weeks and months.
The cryptocurrency is flat over the past 24 hours. Bulls and bears continuously failed to build a trend for the asset.
From here on, analysts are saying Bitcoin must grip $8,800. If the cryptocurrency fails to do so, it would be at risk returning to a bear market phase. In fact, a certain fund manager claimed that Bitcoin will have confirmed “real weakness” once it goes down under that level.
Bitcoin Should Not Go Under $8,800, says Fund Manager
Analysts are saying Bitcoin must not drop below $8,800 or else, it would risk a bearish correction.
A founding partner of Bitazu Capital, Mohit Sorout, recently expressed his thoughts on this matter on July 22:
The significance of $8,800 has been reverberated by a cryptocurrency day/swing trader. A few days ago, he said that to him, $8,800 is the biggest level on his chart. He further said that it would be a hell of a bear trap to test that and break up.
One reason why these market commentators have given such significance to that level is that Bitcoin bottomed at that price in corrections over the past month. If Bitcoin will fail to hold that level, it will confirm a trend of lower lows. Moreover, it would potentially mean that the cryptocurrency market has topped.
Furthermore, the level has importance from an on-chain perspective as well.
Rafael Schultze-Kraft, the CTO of Glassnode, posted a chart on July 22.
The chart shows Bitcoin’s recent price action and the UTXO Realized Price Distribution Indicator. According to the indicator, there is a firm on-chain support level of around $8,900.
Bulls Will Hold; Signal On-chain Indicators
Good thing for Bitcoin bulls, a swath of on-chain indicators and fundamentals show that the leading cryptocurrency will hold $8,800 in the coming weeks.
Kyle Bass, the chief investment officer of Hayman Capital Management, recently said that Bitcoin can rise along with gold
He pointed out the big amount of money printing taking place as central banks try and stem the economic crises.
Furthermore, Ki-Young Ju, the chief executive of Crypto Quant shared on-chain indicators. He recently said that a confluence of four or five on-chain indicators means Bitcoin should be bought at the current levels.