This Eerie Chart Suggests Bitcoin Soon to Crash to $6,000s… Again
Yesterday, Bitcoin (BTC) breached $9,000 for the first time since early/mid-November, surging 3% higher from the $8,700 range equilibrium established earlier that day.
After the aforementioned level was hit, the cryptocurrency paused, collapsing from $9,000 to as low as $8,800.
According to popular cryptocurrency analyst Nebraskan Gooner, the price at which BTC was rejected at “is almost the exact dollar as the mini-fractal showed,” pointing to the below chart, which shows that the price of Bitcoin has traced an eerily accurate fractal (historical price action playing out in the current) over the past few weeks to a near-T.
Bitcoin following this same eerily accurate fractal will mean that the cryptocurrency’s price will fall towards the $6,000s by the start of next month.
It isn’t Nebraskan who has argued that the rejection is bearish. As reported by this very outlet yesterday, Calmly noted that the rejection makes it look like BTC has found a top, and may thus be subject to a strong reversal to the downside that may bring it to the bottom of the $8,500 to $8,900 range.
Many Disagree With the Fractal
While Nebraskan’s fractal implies an imminent return to the $6,000s, analysts are sure that Bitcoin’s only plausible trajectory from here is one that will bring prices higher, not lower.
Dave the Wave, a pseudonymous trader who in the middle of 2019 claimed that he expects for BTC to drop by dozens of percent to bottom in the mid-$6,000s, said that he thinks Bitcoin will surge 30% in the coming weeks to $11,500.
Backing this prediction, Dave looked to a confluence of factors:
Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
BTC rallying to $11,500 would satisfy a historical chart pattern
The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.
Not to mention, analysts have asserted that the fundamental factors for Bitcoin suggest more upside will soon grace this market.
Per previous reports from Ethereum World News,Fundstrat Global Advisors, a top market strategy and sector research company based in New York, recently released its 2020 Crypto Outlook to its clients. They wrote that Bitcoin has a “strong probability” of gaining over 100% in 2020, meaning a year-end price of over $15,000, due to a confluence of three primary factors: the upcoming block reward reduction, geopolitical risk, and the upcoming presidential election for the U.S.
Featured Image from Unsplash
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.