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Bitcoin will decline almost all year and will drop to $ 2200

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The Coming Market Crisis: 85-90% Decline Soon | Harry Dent

Bitcoin will decline almost all year and will drop to $ 2200

Bitcoin will decline almost all year and will drop to $ 2200
CONTENT

  • Bitcoin is adjusting from June 2019.

  • Current price dynamics resemble 2018 price behavior.

  • BTC is likely to reach the bottom in the $ 2000- $ 2200 region.

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Bitcoin remains in line with a long-term correction after hitting $ 13,880 on June 24, 2019. This corrective pattern is somewhat reminiscent of the pattern formed by the price after reaching an all-time high in December 2017.

Cryptocurrency trader and analyst Altcoin Sherpa (@altcoinSherpa) shared on Twitter a scenario in which the bitcoin (BTC) rate has not yet bottomed out. He believes that a parallel can be drawn between bitcoin’s current momentum and price behavior in April 2018 – shortly before the currency began to decline and eventually reached a base around $ 3,300 in December of that year. If this analogy is correct, then soon we can expect the establishment of a local maximum, and then – a decline in prices throughout almost the entire 2020.

How would this make you feel for #Bitcoin? $ BTC $ XBT pic.twitter.com/dHkUoucB8D

Bitcoin will decline almost all year and will drop to $ 2200

– Altcoin Sherpa (@AltcoinSherpa) April 6, 2020

2018 fractal

The graph below compares the discussed phases. Time intervals highlighted in one color correspond to each other within the framework of this theory. If the price repeats this pattern, it will soon begin to decline and form a double bottom around the March 13 low at $ 3,800. Bitcoin could then make a bearish breakout and head further south in May towards $ 2,000..

Earlier, the editors of BeInCrypto have already shared similar forecasts, noting that the BTC is carrying out the W-X-Y correction. According to this scenario, a possible target level may also be the $ 2000- $ 2200 region, but in this case, the minimum was expected in July. On the other hand, comparison with the dynamics of 2018 suggests that if the price adheres to the previous schedule, then the minimum can be formed only in November..

Technical Indicators

Using the Fibonacci tools and the RSI index in our analysis, we can note that this comparison with the 2018 fractal becomes not so correct..

So, in 2018, the price bounced to the Fibo level of 0.382, after which it decreased and formed a double bottom against the background of bullish divergence signals.

Now the rebound has reached the Fibo level 0.618 of the correction of the previous decline. However, the second low was significantly lower than the first, and at the same time it was not accompanied by signals of bullish divergence.

Curiously, the 3-day RSI is much closer to the base of December 2018 than to the value of April..

Bitcoin will decline almost all year and will drop to $ 2200

Probable minimum

To try to identify a possible low, we estimate the rate of decline from the December 2017 high and from the April 2018 low. As a result, we get values ​​of 83% and 50%, respectively.

Applying the same calculations for the current price action, we conclude that the price may decline to a low of $ 2,200. It is noteworthy that we have already obtained similar results in our recent analysis. However, as mentioned above, this method assumes that this minimum will be reached in November..

Thus, it is possible that the BTC rate is following the corrective pattern from April 2018, but this scenario is not supported by either technical indicators or Fib levels. If the price continues to follow this pattern, it could hit a low around $ 2,200 in November..

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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