Over the past week or two, Bitcoin (BTC) has tried to make a recovery. After hitting $6,600 late last month, the cryptocurrency bounced back, hard. Within a few days’ time, the price of BTC went from the lows — the lowest the asset had traded at since May 2019 — to $7,800 in a 20% grind higher.
Due to this move higher, many thought that the bear trend was over, citing the fact that Bitcoin bounced off key support in the mid-$6,000s range, which acted as key levels in previous moves over the asset’s history.
BTC has since given back a good portion of those gains, returning to $7,300, where it sits as of the time of writing this article. Volatility has decreased, though analysts say that this is indicative of a strong move coming.
Analysts say that BTC’s inability to break higher during that move may be a sign that there’s more pain to come for this market.
CryptoBuzz, in fact, recently noted that the “macro trend” for the cryptocurrency remains decisively bearish, no matter what other analysts say. And here’s why.
Why Bitcoin Could Hit $5,000
Trader CryptoBuzz recently laid out why he thinks that a macro bear case remains at the forefront of his mind when analyzing Bitcoin.
He noted that the recent move to $7,800 was bearish for a number of reasons: BTC was unable to put in a decisive close above the key 100-week simple moving average and is now being rejected by that same level; the next notable support level, the 200-week simple moving average, is in the $5,000s; the price is currently forming a trajectory to put in a double bottom/Adam & Eve pattern in that range; the cryptocurrency remains below the “ultimate resistance” of the 20-week exponential moving average and below the upper bound of a descending channel that has been depressing Bitcoin for the past six-odd months.
This confluence, his chart implies, will bring Bitcoin down to the low $5,000s by early 2020, which would mark the bottom before a reversal to the upside.
Buzz isn’t the only one who has this belief. Popular trader Mac wrote earlier this year that he thinks the ultimate bottom will be close to $5,100. Mac argued that this will be the “ultimate bottom” due to a confluence of key supports: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.