A seasoned cryptocurrency strategist who astutely predicted the recent downturn of Bitcoin shed some light on the potential trajectory of the infamous digital currency. If there’s any weight to the analyst’s forecast, we are possibly on the threshold of a far more substantial bearish phase in the cryptocurrency market.
Earlier in the week, the world of cryptocurrency was still basking in the glow of Bitcoin’s steady ascent beyond $70,000. Amidst the euphoria, a handful of analysts raised caution flags. Notably, the analyst known as Xanrox had taken to the renowned platform TradingView, warning of a probable nosedive in Bitcoin’s price. His augment is supported by several indicators seen recently.
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Xanrox’s analysis suggested that Bitcoin’s boom could be short-lived, forecasting a crash in June rooted in the price activity observed in May. An interesting marker that gained the attention of Xanrox was the formation of what he referred to as an “FVGAP” at the $62,000 level. According to him, this could potentially trigger a bullish surge for Bitcoin down the line. The reason being, such gaps typically tend to be filled sooner rather than later, thereby indicating an impending retrace.
Furthermore, Xanrox infers from the Elliott Wave Theory that Bitcoin has completed its first upward or “impulsive” wave, Wave 1, and that Wave 2 is poised to be bullish in nature. Yet, Xanrox’s analysis expands beyond these waves, he highlights the formation of a corrective ABC pattern taking place.
Additionally intriguing is the observation of a diminutive red trend line on that chart that has already exhibited signs of waning strength. This falling trend line, added to a rising wedge pattern observed by Xanrox, acts as a strong indicator of an incoming drop in the digital currency’s value.
Xanrox’s analysis was posted on late May, and since then, Bitcoin has seen a considerable drop, now hovering below $68,000. This sharp downturn partially confirms the analyst’s prediction, thereby warranting an update on his post,…
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