Where Bitcoin is going next? May Plunge to $6700?
In June, once Bitcoin was soaring higher than $10,000, nearly every dealer and their mother expected the cryptocurrency to continue rocketing higher. Indeed, at the time, the asset was poised to take on its previous incomparable high whereas emotions were riding high — an ideal combination for the price to travel vertical.
Though, one analyst continuously concerned rationality to come to the crypto markets, claiming that this surge higher than $10,000 was a transparent overextension of BTC’s long growth curve. He went as far as to say that Bitcoin was poised to come to $6,700. Of course, the analyst was laughed at, calling the prediction “irrational” and “FUD.”
On Nov. 22, however, the analyst, “Dave the Wave,” was proven right; for on this date, Bitcoin fell from $8,000 to $6,700, Confirming a decision that he revamped 5 months earlier, that he stuck by despite the now-infamous 42 % surge seen late last month.
Here’s where Dave expects Bitcoin to head next.
Where’s Bitcoin going next?
According to a recent Twitter thread from the analyst, Bitcoin is likely to enter a phase of consolidation after tapping and cleanly bouncing off the $6,700 level.
The chart he posted, seen above, implies the cryptocurrency can endure effectively flat price action into mid-December, then can run off towards $10,000 because the year—and the decade—ends. Dave elaborated:
“Looking forward – consolidation within the symmetrical triangle and eventual breakout next year. The building of a solid base/ recovery period for the breakout to new highs.”
As to why he's expecting for Bitcoin’s bleeding to stop at $6,700, Dave looked to a confluence of factors:
1. the three-year moving average—which presently sits within the low-$6,000s—is wherever BTC traditionally has found support in early bull markets;
2. the weekly Gaussian channel indicator is bullish, and therefore the channel’s midpoint sits at $6,600;
3. the cryptocurrency has bounced off the 0.5 Fibonacci Retracement level of the $3,200 to $13,800 range, implying bottoming value action.
Can the market drop more?
Although Dave powerfully believes the bottom of the bear trend was put in at $6,700, different analysts are receptive to the likelihood that the market can drop further from here, despite the bullish confluence mentioned above.
One such bear is Mark Dow, an American hedge fund manager that shorted the $20,000 top seen in December 2017 and covered the $3,200 bottom—not a feat to sneeze at, that’s for sure.