In a recent analysis, a crypto strategist accurately predicted the current Bitcoin downtrend and provided insights into where the price may be headed next. The decline in the crypto market, according to the analyst, may only be in its beginning stages. The prediction came at a time when the crypto market was still euphoric with Bitcoin climbing above $70,000.
One of the indicators that the analyst points to is the “FVGAP” created at $62,000. According to the analyst, this gap could signal a bullish trend for Bitcoin as these gaps are usually filled sooner rather than later. Additionally, the analyst highlighted the completion of the first impulsive Wave 1 in the Elliott Wave perspective, indicating that Wave 2 is expected to be bullish. Furthermore, the creation of a corrective ABC pattern and the breakdown of a red trend line add to the bearish sentiment.
Since the initial prediction, Bitcoin has already broken down below $68,000, aligning with the analyst’s forecast. In a follow-up post, another red trend line is identified to be breaking down after the first breakdown. The formation of a symmetrical triangle suggests a potential further decline in the Bitcoin price. The analyst’s chart indicates a possible breakdown towards the $62,000 level, signifying a more than 10% decline in price, which could have significant implications for the market as a whole.
The analyst cautions investors to be careful during the summer as the price action for Bitcoin may not be as volatile during this season. With Bitcoin currently trading just below $68,000 and experiencing a 2.7% loss in the last week, the overall monthly trend remains positive with a 10.28% gain.
The analysis presents a bearish outlook for Bitcoin in the coming months based on technical indicators and patterns observed in the chart. With the potential for further decline in price, investors are advised to exercise caution and closely monitor the market trends. It remains to be seen whether the predictions made by the analyst will come to fruition, but the current signals point towards a challenging period ahead for Bitcoin and possibly the broader crypto market.