It’s been a volatile past seven days for Bitcoin.
After peaking at $10,100 some 48 hours ago, the cryptocurrency took a dive on Saturday and Sunday morning, tanking $2,000 in about the span of 20 hours. In a dramatic sell-off, Bitcoin fell as low as $8,100, crushed by a seeming stop run that was reflected in the $250 million worth of BitMEX long liquidations.
While prices have recovered by a handful of percentage points as key technical levels have held, a prominent trader is charting a deeper drop for Bitcoin. The trader in question is one that called Bitcoin’s retracement to $6,400 in the middle of 2019 when everyone else was expecting BTC to “moon.”
Bitcoin Could Revisit $6,400: Accurate Analyst
Bitcoin may have printed a confluence of positive technical signals, but a top analyst is expecting the lead cryptocurrency to begin a strong retracement.
The analyst — one that has been historically accurate in analyzing Bitcoin — pointed to a fractal of a previous rally in BTC’s history that is structurally similar to the one we just saw.
This fractal predicts that the cryptocurrency will fall to $6,400 in the coming weeks, which would be a 0.5 Fibonacci Retracement of the rally from the $3,700 lows. A move to $6,400 would mark another 25% worth of losses from the current price point.
Crypto Market Still Macro Bullish, Analysts Reckon
While the trader expects a return to the ever-important $6,400 level, he remains macro bullish, as do others.
One analyst suggested that there is a confluence of four fundamental factors that in convergence are a potential perfect storm. The analyst went as far as to say that he’s so convinced by these factors that he is “really struggling to see a bearish case” for Bitcoin here.
The fundamental trends are as follows:
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