Trader: Bitcoin Went “Too Hot Too Fast,” Calls For A Drop Below $6,000 BTC/USD Price Point
- Bitcoin’s corrective phase to see us going below $8k
- Could be even lower to $5,850, Consolidation to extend into Q4
The Q2 of 2019 was the one that turned investors, traders, and analysts bullish, calling out the end of the crypto winter.
Making our way from $4,100 to end the quarter at above $11,000, we recorded gains of a whopping over 150 percent. Not to mention, we went as high as $13,900 at one point in that quarter.
Moving into Q3 of 2019, we are correcting that flight to new 2019 highs.
Though we are experiencing a pullback, this is no cause for concern.
Experts have repeatedly pointed how that these pullbacks are rather healthy for the market as we went up too fast. A step back would only help in making a strong move forward.
But how low would we go?
Bitcoin’s Corrective Phase To See Us Going Below $8k
Yesterday, BTC/USD went as low as $9,050 level, but since then has recovered. Currently, we are trading around $9,750 with 24 hours gains of 2.94 percent while managing the daily trading volume of $1.85 billion which has come down from yesterday's over $3 billion.
But if experts are to be believed, it’s not over for BTC bears yet.
While analyst, DonAlt said “Any resemblance of bullish market structure is gone,” market analyst and trader Benjamin Blunts noted that the leg down has opened the door for an even deeper decline that could take us down to $7.5k.
This is what happens. Prices push up, everyone is on board and excited, and prices obviously correct.
We will likely move sideways for long enough that many either drop from boredom or weakening conviction, the second mark-up occurs when more of you are shaken out.
— Cantering Clark (@CanteringClark) July 16, 2019
Trader Crypto Squeeze has even a lower target as he says, “$7k would be a comfortable price to buy in heavily on BTC,” that is if we are “unlucky” to dip further to $6k. This level, he expects the leading cryptocurrency to hit within a month.
Could Go Even Lower To $5,850, Consolidation to Extend into Q4
Again, this is not the maximum pain!
According to the trader, Jonny Moe, “We simply got too hot too fast.”
If we take a look at the history of Bitcoin price, we didn’t see a new all-time high (ATH) until after the halvings, the last two reward halvings that is, notes Moe. This time the halving is projected for May 2020.
This is why Moe expects BTC price to consolidate throughout the rest of 2019 and start making a run to $20,000 next year.
A similar sentiment is echoed by analyst, Bob Loukas who says, “Bitcoin intermediate-term trend is almost certainly over now.”
A corrective phase he says appears to be well underway and selling heavy but at some point, re-accumulation will hold the line. This consolidation period, he is expecting to last as much as 4 months, that is two cycles.
However, the long position is intact and any drop in price are just ‘buy the drip’ opportunities.