Bitcoin's price action from 2020 can now be described as “crazy.” The leading cryptocurrency has risen to $ 10,500 and has fallen more than 62% since February amid concerns over the outbreak of the COVID-19 virus. Right now, some of the most prominent analysts in the industry are considering BTC's next destination.
The Bitcoin price has seen a 50% collapse in just two days after the World Health Organization (WHO) declared the corona virus to be a global pandemic. The coin has dropped from as high as $ 8,000 to as much as $ 4,000.
The massive sell-off has left more than half of Bitcoin's circulating supply – about 9.8 million BTC, at a loss, according to Glassnode. The public information and blockchain company believes this is the first time in more than a year, the percentage of BTC supply that is profitable is less than 50%.
A large number of investors have suffered losses during the recent recession, and this seems to have caused extreme fear across the market, based on the index. Crypto Fear and Greed. This basic index has reached 10 (extreme fear).
Predict the future through chart patterns
While most market analysts expect Bitcoin halving to be bullish, Peter Brandt, a veteran trader with 45 years of experience, seems to have predicted a recent collapse in early December 2019.
At the time, Brandt explained that Bitcoin's price action has been characterized by a series of parabolic movements since 2011. Every time a parabola is broken or violated, the market usually tends to decrease in the least. 12 months from high to low. These violations result in a 80% correction measured from top to bottom.
According to this premise, the author of the Professional Commodity Trading Journal predicts that the fourth parabolic violation of BTC – which took place around July 2019 after reaching a high of $ 14,000, could lead to to a move below $ 5,000. Such a decline would represent an 80% correction as necessary for Bitcoin to continue its “historical uptrend”, he said.
Now that Bitcoin has plummeted to $ 4,000 over the past two days, Brandt thinks the carnage may not be over. The legendary Trader argues that if viewed bias when looking at the chart of BTC, the coin is likely to hit the market bottom below $ 1,000.
"I have stated that there is a 50% chance for BTC to increase to USD 100,000 and a 50% chance to decrease to USD 0. When it passed $ 7,500, I bet on zero. "
Despite Brandt's pessimistic outlook, former Wall Street trader and VP at JP Morgan Chase Tone Vays believes that the way Bitcoin bounces from the $ 4,000 support level is promising.
Vays explained that the market often bottomed out after surrendering – something that seems to have happened during the recent collapse. This surrender tends to push prices to new lows, he stressed. However, Bitcoin is still trading above the December 2018 lows of $ 3,215.
"For those who have 'bought dip' below $ 4,000, HODL. Those who have missed, can buy freely here, but should also place the BTC limit orders at $ 4,550, $ 3,550 and ALL IN at $ 2,750 to 2,950 USD! "
Everything is still there
While both Brandt and Vays are waiting for a deeper downward movement, the TD sequential indicator is showing a buy signal in the form of a red 9-day candle on the 3-day chart of BTC. This bullish formation estimates 1 to 4 pullback candles or the beginning of an uptrend.
Time will tell if the current price is a buy the dip opportunity, or if it is just the beginning of a next sell-off.
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According to CryptoSlate
Translated by ToiYeuBitcoin