Worse Has Yet to Come, Move Under $7,000 Likely


Bitcoin (BTC) hasn’t been doing too hot as of late. If you haven’t been living under a rock, you know that.

As of the time of writing this, the leading cryptocurrency is trading at $7,400 on major exchanges. While this means nothing in and of itself, Bitcoin is down by nearly 50% since its year-to-date peak of $14,000, and down some 10% in the past 48 hours alone.

The pain might not be over though. The general consensus of investors the industry over is that Bitcoin still has room to fall from here. Here’s more on why.

Related Reading: Bitcoin Price to Bottom in Mid-November at Around $6,700: Analysis

Bitcoin Indicators Flash Red

Popular analyst Eric Thies recently noted that his proprietary Market God indicator is in the midst of printing a massive “sell” signal on Bitcoin’s one-month chart. As can be seen in the chart below, the trend indicator, if Bitcoin closes at around the same level it is at now on October 31st, will print a “sell” signal — something only seen at the top of 2018’s bull market and 2014’s bull market.

Also, the Tom Demark Sequential has flipped from a “buy nine” candle to a “sell nine” candle, according to one Telegram channel that tracks the time-based indicator.

Also Alternative.Me’s “Bitcoin Fear and Greed Index”, which is an oscillator that ranges from 0 to 100 aims to track market sentiment, is currently trending at 20, which is far from the extreme lows of 7 or so seen earlier this year. This implies that there is room to fall.

Where Will Bitcoin Bottom?

Related Reading: Gold Is the Top Safe Haven Asset, but Here’s Why Bitcoin Has Appeal

It is important to point out that not of these indicators have price targets attached to them. This may leave you wondering — at which point will Bitcoin bottom? True to the volatile and unpredictable nature of cryptocurrency, opinions are mixed.

An oft-cited price prediction, however, is the mid-$6,500s. As reported by this outlet previously, popular analyst Dave the Wave claims that his ideal target is $6,700, which is where there exists a confluence of technical levels: the 0.5 Fibonacci Retracement of the $3,200 to $14,000 move, the bottom of a descending channel, amongst other important levels.

Mike Novogratz has echoed this price prediction. The Wall Street mogul said that while “he wants [Bitcoin] to hold here,” his next downside target is $6,500 — around 13% lower than the current price of $7,400.

And Thomas Lee of Fundstrat Global Advisors said that he sees the best risk/reward ratio for Bitcoin investors under $7,000, not at current levels.

Still in Accumulation Phase

While there are some investors are flipping long-term bearish on Bitcoin, claiming that this may be the start of an unexpected redux of 2018’s fabled “Crypto Winter”, this move is technically par for the course for Bitcoin.

Analyst CryptoHamster reminded his followers in a recent tweet that if Bitcoin would “simply repeat the previous cycle” this time around, it is currently in the midst of an accumulation period. “So, technically, what’s happening now could be seen as just a return to a zone next to accumulation (yellow, 5,500$~8,000$) and then BTC could rise again in 2020,” he explained while referencing the chart that can be seen below.

Related Reading: Venture Capital ‘Ice Cold on Crypto’, Until The Next Bull Market Anyway
Featured Image from Shutterstock

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