Bitcoin can continue to fall
As Ethereum World News only covered, the crypto market has not done too hot lately. As a result of documents from the New York Attorney General's office revealing that Tether (USDT) and Bitfinex are likely to be economically thin, Bitcoin (BTC) has fallen dramatically. 30 minutes after the report appeared, the BTC fell by almost 10% to reach just under $ 5,000 resistance level of $ 4,950.
While Bitcoin and other cryptographic curves have since recovered, with the BTC market finding some support in the $ 5,100 series, an analyst is worried that a further move lower may be incoming.
Financial Survivalism, a self-proclaimed "economically revolutionary prepper" and leading cryptocurrency trader, has recently seen Bitcoin's current market structure look like it did in early December. The only difference is that the chart (and the indicators) are inverted. As Survivalism, which believed that Bitcoin could see sub- $ 2,000 prices before a face-melting rally, explained, the latest measure in the TD Sequential and Relative Strength Index (RSI) indicators is almost identical to what was seen in early December, but completely inverted.
Thus, if the story is followed, Bitcoin could see a "long-term consolidation period", which can happen between $ 4,200 and $ 5,800. He adds that if BTC falls below its 50-day and 200-day exponential moving average (EMA) of $ 4,700, the golden cross will be considered void and set the stage for a potential move lower.
It is not clear where Survivalism believes that BTC will look for the consolidation period. But as indicated earlier, the analyst has suggested that if Bitcoin follows Hyperwave Theory, a parabolic trend for massive drawdown patterns that asset classes / markets with the potential to catalyze large macroeconomic shifts tend to experience at some point, it could see $ 1,165. or even lower before the next move higher.
Survivalism is, of course, not the only one that is short-term bearish on crypto curve. As explained by Magic Poop Cannon, Bitcoin's chart structure, 50-week exponential moving average, 50- and 200-day moving average, Fibonacci retracement levels and Relative Strength Index (RSI) readings are identical to those seen in mid-July. Thus, Magic anticipates that if historically precedent is followed, the BTC will trade in low to between $ 5,000 to May 7, and will then fall to its 0.618 Fibonacci retracement, which currently holds $ 4,025.
Others are still optimistic
Some are sure BTC will do well in the short term. A trader who goes with "Mayne" on Twitter recently claimed that Bitcoin's "daily chart doesn't look that bad." He explains that as long as the leading crypto course holds over "gray", an area between $ 4,900 and $ 5,000 is all O.K.
And the rapidly changing mood of Tethers Legitimacy will support this cautiously optimistic narrative as well. As researcher Hasu notes, the fact that Bitfinex dipped in Tethers reserves effectively confirms that USDT is actually supported, and that the exchange only used bad business practices and / or was unlucky with its Panama-based payment processor / partner.
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