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.
I think BTC is going to the 1000 range. It will probably take a while to get there, but based on everything I see right now, I think that is the most likely target. That would be great for crypto too. It would destroy investors and projects, and that's exactly what we need.
— MAGIC (@MagicPoopCannon) November 28, 2019
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.”