Bitcoin Price Needs to Defend $6,800 at All Costs: Analyst Who Foresaw Decline From $8,500 14
Bitcoin (BTC) News

Bitcoin Price Needs to Defend $6,800 at All Costs: Analyst Who Foresaw Decline From $8,500

By Nick Chongon

Once again, Bitcoin (BTC) has stagnated, finding itself trading in the low-$7,000s for days on end.

This price lull has led analysts to say that a massive move in the crypto markets is brewing. Prominent trader Big Chonis, for instance, noted that Bitcoin’s Bollinger Bands on the one-day chart are starting to consolidate, tightening as prices have stagnated in the low-$7,000s range.

The last time Bitcoin’s Bollinger Bands were this tight, the analyst noted, the cryptocurrency saw strong 15%+ moves. Should history repeat, the cryptocurrency may be primed to see a “much bigger move” than what has been seen over the past few days.

While Chonis didn’t indicate in which direction he expects for Bitcoin to head during this impending bout of volatility, some are fearing the worst, claiming that it may be only a matter of time before the cryptocurrency returns to its multi-month lows in the mid-$6,000s.

But that won’t be game over for bulls, an analyst has said. Velvet, a popular trader that foresaw the strong ~25% decline from $8,500 to $6,600 in November, recently argued on Twitter that Bitcoin investors have to defend the $6,800 levels “with ALL they’ve got,” noting that if that level holds and industry sentiment flips decisively bearish, there will be fuel for Bitcoin to return higher.

This comes a week after the popular analyst remarked that Bitcoin has finished a five-phase wave pattern, has bounced off the golden Fibonacci Retracement level at the 50-day moving average, and is in the midst of a giant falling wedge — all telltale signs that the cryptocurrency is about the bounce higher. While he didn’t give a concrete target, his chart suggests that a move to $8,600 — 15% higher than current prices — will likely take place in the coming weeks.

It can be assumed that BTC holding $6,800 in the coming days will confirm that this bullish medium-term market structure that Velvet described earlier this month remains intact.

This bull bias has been corroborated by other analyses. Per previous reports from Ethereum World News, ” Bloomberg wrote that with Bitcoin’s price stabilizing “above its support level of the initial [CME futures] gap created on May 10,” there’s potential that a bottom was marked in the $6,500 range, which the cryptocurrency breached late last month shortly after tumbling under $8,000 after hitting $10,500 in the now-infamous “China pump.”

Also, top trader Cantering Clark recently observed an “uncanny resemblance” between the BTC price action seen over the last few days and the accumulation phase seen in late-2018 and early-2019, implying the cryptocurrency has bottomed.

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