Analysts see Another 40%-80% Drop in Bitcoin Price But say It’s Good for Market

  • GTI Vera Convergence Divergence Indicator says Bitcoin has entered a new buying trend
  • “The bottom is textbook perfect,” but should wait once BTC jumps above $8,000
  • However, even another 40% drop “would set Bitcoin up for a really nice higher low on weekly”
  • Bearish analyst sees $1,000 as the most likely target

Since falling to $6,500 on Nov. 25, Bitcoin has jumped to above $7,800, in a Thanksgiving day after pump.

Currently, BTC/USD is trading around $7,700, as per Coincodex while managing the daily trading volume of about $330 million.

Bitcoin price back on the rise, up over 100% YTD, Source: TradingView

As we reported, the reversal is still too early to call a trend reversal and for this rally momentum to sustain, we need to make some higher highs.

However, GTI Vera Convergence Divergence Indicator that measures up and down shifts says Bitcoin has entered a new buying trend. This indicator further signals that BTC is ready to make its way to the upper trading range around $8,000.

Craig Erlam, senior market analyst at Oanda, however, said that profit taking on short positions has lifted the price, adding “there’s obviously been a lot of bearish sentiment recently and there’s nothing in the bounce that suggests a shift to me.”

“The bottom is textbook perfect,” Market Turns Bullish

As Bitcoin makes a recovery after losing 30% of its value in November, analysts and traders on Crypto Twitter (CT) have turned bullish.

CryptoHornHairs said if we break the $7,400 level, it is a clear long and his game plan is still the same. Now, his next target to watch is $8,000 while expectations for longs to the higher probability remain intact.

Economist and trader Alex Kruger projected “$8000 will trade again soon” last weekend clarified that this was because this has been where downtrend accelerated.

“The bottom is textbook perfect, many people quit in rage, Bitmex funding about to turn positive. Nothing to chase if not long IMHO,” said Kruger.

But once BTC goes above $8k, he said “short above” as such closing all longs.

“Could be a few months of range-bound sideways action. But the bigger picture is still looking fine,” said trader Crypto Michaël.

But there’s still a call for $1,000

While the majority of the market has turned bullish and Kruger believes the bottom is in but analyst Magic Poop Cannon is predicting immense pain.

The analyst accurately called the breakdown of Bitcoin at $6,000 last year and then the bottom of the market in December. He now sees Bitcoin hitting a new bottom at $1,000 and if BTC drops to that level, XRP he says can fall to 0.03.

This target is extremely low that could destroy the investors and projects but the analyst says that is what the market needs and would be good for it.

Twitter user Crypto Capital Venture meanwhile says even if BItcoin sees another 40% drop, which would take us to $4,500 from the current level, that “would set Bitcoin up for a really nice higher low on weekly.”

This is because despite being down 50% since June, Bitcoin hasn't seen any type of capitulation, like the one we saw in November and December 2018.

Though he says it is not what he thinks will happen, this is something that a BTC investor should always be prepared for in the back of their mind. Also, “it would look really nice on the long term parabolic chart.”

Bitcoin (BTC) Live Price

1 BTC/USD =$10,789.4071 change ~ 0.43%

Coin Market Cap

$199.5 Billion

24 Hour Volume

$33.94 Billion

24 Hour VWAP

$10.75 K

24 Hour Change

$46.8340

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,484FansLike
2,795FollowersFollow
4,267FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Crypto Exchange Gemini Makes an Aggressive Move, Adds 15 Hot DeFi Tokens

DeFi is all the rage in today's crypto world, and no one wants to be left behind, especially cryptocurrency exchanges. Over the past few months,...

Ethereum ‘Getting Ready for Spadina' Testnet Next Week

The Spadina testnet of ETH 2.0 has been scheduled for genesis before the month ends, on September 29 at 12 pm UTC, as per...

KuCoin Hack: Exchange’s Insurance Fund to Cover User Loss “Completely,” Tether Freezes 33M USDT

The Singapore-based cryptocurrency exchange KuCoin released a statement regarding detecting large withdrawals on September 26, 2020, at 03:05:37 (UTC+8). The exchange has reportedly lost $150...

Crypto Custodian, Anchorage, Adds Support for DeFi Tokens: BAL, NXM, AAVE, UNI, and YFI

Anchorage, the Delaware corporation headquartered in San Francisco, California, and digital asset custodian for institutional investors is diversifying its DeFi token options for its...

Coinbase Wallet Targeted by New Trojan Malware Dubbed ‘Alien’

The Coinbase wallet is among 226 Android applications targeted by a recently discovered Trojan dubbed ‘Alien.’ This malware mostly targets the financial services space...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today