Why a Top Analyst Thinks Bitcoin Price Could Fall By 20% Before Bottoming

On Monday, the Bitcoin (BTC) price started to falter. After trading above $7,000 for days on end — a consolidation that forced volatility levels to hit multi-month lows— the cryptocurrency slipped on Monday morning, falling from $7,100 to $6,800 in three five-minute candles, catching many traders with their proverbial pants down.

Despite the fact that the cryptocurrency remains above key supports in the $6,000 region — an area of utmost importance during the 2018 bear market, acting as a “make or break” level for Bitcoin — a top analyst claims that the pain is not over yet.

Related Reading: Bitcoin Futures Gap Exists at $11,800; Can Bulls Fill the Gap?

Bitcoin Still Has Potential to Drop 20%

According to a recent update from Jacob Canfield, a professional cryptocurrency trader, Bitcoin is not yet near a macro bottom in his eyes. He remarked that the cryptocurrency is likely to see a 20% drawdown from the current level of $6,900 to $5,500, for there is where the 0.786 Fibonacci Retracement of the rally from $3,100 to $14,000 lies.

https://twitter.com/JacobCanfield/status/1206796842144616449

Canfield’s analysis that a move to $5,500 could be had corroborates a similar thought from trader CryptoBirb, who noted that Bitcoin still is likely to see one final dump to $5,400-$5,600, which he also pointed out coincides with the 0.786 Fibonacci.

Birb added that this drawdown would validate a trend seen in previous market cycles, which saw BTC see a short-term bearish though macro bullish throwback to key support prior to a resumption of a parabolic uptrend.

There’s also Cold Blooded Shiller, a trader who recently suggested that the leading cryptocurrency’s chart suggests that a bottom is not yet in: “From a volume perspective, there is nothing to me that screams “THIS IS THE BOTTOM.” For both markdowns and markups we typically expect to see ‘climactic’ volume,” he wrote.

Related Reading: Despite 50% Crash, Bitcoin Still Up 96% in 2019; Can Bulls Maintain Uptrend?

Is Macro Uptrend Still Intact? 

While a move back to the $5,000s could be had, many researchers have asserted that the macro uptrend for the Bitcoin market remains intact.

Hans Hauge, a senior quantitative researcher at Los Angeles-based crypto fund Ikigai Asset Management, recently gave a confluence of reasons why he remains bullish on the leading cryptocurrency.

The Ikigai analyst first drew attention to a chart from Deutsche Bank, the 17th largest bank in the world. It was estimated that the number of users of Blockchain Wallet (blockchain.com) could surmount over 200 million — around six times higher than where the sum currently is — by 2030. Hauge also looked to the fact that the CEO of Bakkt has just become a U.S. Senator, meaning that Bitcoin could get its own cheerleader in Washington.

Related Reading: XRP Price Ready to See Strong Move; What Are Analysts Thinking?

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