A seasoned cryptocurrency strategist who astutely predicted the recent downturn of Bitcoin shed some light on the potential trajectory of the infamous digital currency. If there’s any weight to the analyst’s forecast, we are possibly on the threshold of a far more substantial bearish phase in the cryptocurrency market.
Earlier in the week, the world of cryptocurrency was still basking in the glow of Bitcoin’s steady ascent beyond $70,000. Amidst the euphoria, a handful of analysts raised caution flags. Notably, the analyst known as Xanrox had taken to the renowned platform TradingView, warning of a probable nosedive in Bitcoin’s price. His augment is supported by several indicators seen recently.
Xanrox’s analysis suggested that Bitcoin’s boom could be short-lived, forecasting a crash in June rooted in the price activity observed in May. An interesting marker that gained the attention of Xanrox was the formation of what he referred to as an “FVGAP” at the $62,000 level. According to him, this could potentially trigger a bullish surge for Bitcoin down the line. The reason being, such gaps typically tend to be filled sooner rather than later, thereby indicating an impending retrace.
Furthermore, Xanrox infers from the Elliott Wave Theory that Bitcoin has completed its first upward or “impulsive” wave, Wave 1, and that Wave 2 is poised to be bullish in nature. Yet, Xanrox’s analysis expands beyond these waves, he highlights the formation of a corrective ABC pattern taking place.
Additionally intriguing is the observation of a diminutive red trend line on that chart that has already exhibited signs of waning strength. This falling trend line, added to a rising wedge pattern observed by Xanrox, acts as a strong indicator of an incoming drop in the digital currency’s value.
Xanrox’s analysis was posted on late May, and since then, Bitcoin has seen a considerable drop, now hovering below $68,000. This sharp downturn partially confirms the analyst’s prediction, thereby warranting an update on his post, outlining the potential future of Bitcoin’s pricing.
In his follow-up content, he points out yet another red trendline on the brink of a breakdown, following the first. The presence of two staggering lower trend lines paints a gloomy picture of Bitcoin’s future value. Furthermore, Xanrox indicates that Bitcoin’s price has formed a symmetrical triangle, which he predicts will also break down, leading to a fall in its price.
As for the degree of the anticipated plunge, Xanrox’s illustration signals a drop toward the $62,000 level, implying a decline of over 10%. Such a trend could cause turbulence across the wide cryptocurrency market. The analyst advises caution in the months to come, as he perceives summer as a potentially low volatility period for Bitcoin.
At present, Bitcoin is positioned a notch below $68,000 according to the latest data. In spite of suffering a significant loss of 2.7% in the past week, it’s worth noting that the cryptocurrency still showcases a promising growth of around 10.28% on a monthly basis.