As Bitcoin bulls have failed to maintain the momentum seen from April to late-June, fear has started to grip the cryptocurrency market.
Analysts are starting to suspect that BTC has further downside, despite the fact that it has already collapsed 35% from its year-to-date high of $14,000.
Dave The Wave, for instance, has eyed $6,500 — which the popular analyst claims is a price point that is much more healthy and sustainable for Bitcoin.
This may not be possible, however.
Bitcoin to See Smaller Correction: Analyst
According to Crypto Michaël, a full-time trader at the Amsterdam Stock Exchange, Bitcoin is unlikely to drop to “$6,000 or so” — some 40% from the current price point of $10,000.
He claimed that instead of such a move, he is currently eyeing a “minor” correction that will bring Bitcoin to hit the 100-week moving average to confirm a long-term bullish uptrend, trade sideways for a number of months, and then continue to fresh highs around the halving.
Such a correction, should it occur, will most likely happen in the $8,000 price range and in the “coming weeks/September”.
Michaël pointed out in his tweet that during 2015/2016’s bear market recovery, the cryptocurrency also gave its 100-week moving average a love tap, prior to surging higher in the famous bull run that brought Bitcoin to $20,000.
He isn’t the only analyst expecting for Bitcoin to soon resume its foray to new heights. As reported by NewsBTC previously, Adaptive Capital’s Murad Mahmudov believes that Bitcoin is most likely to test $9,750 — the 0.618 Fibonacci Retracement of this whole cycle — in the following month in a bout of sideways price action, then “continue steadily upwards.
He backed his prediction by looking to August 2016, when BTC was in a similar situation then as it is now: BTC had just rallied out of a bear market, but bears wanted one last hurrah. Then, Bitcoin tested its 0.618 Fibonacci Retracement prior to skyrocketing higher.
Also back in 2016, trend indicators, like historical volatility and the Relative Strength Index (RSI), hit certain levels that they are trending to at this moment.
And, to put a cherry on the cryptocurrency cake, the analyst added that the Fishnet indicator (similar to the Guppy) is tightening as BTC has entered a wedge. This pattern was last seen in 2012 and in 2015/2016, back when Bitcoin was breaking out of bear markets.
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