A cryptocurrency strategist recently made a bold prediction about the future of Bitcoin’s price. This prediction challenges the optimism that was prevalent in the market earlier this week, when Bitcoin crossed the $70,000 mark. The analyst, known as Xanrox, accurately predicted the current downtrend in Bitcoin’s price and now suggests that the market may be in the early stages of a decline.
One of the key indicators that Xanrox points to in his analysis is the “FVGAP” that was created at $62,000. This gap, according to the analyst, could signal a bullish trend reversal for Bitcoin, as historically, such gaps are often filled sooner rather than later. Additionally, the analyst highlights the Elliott Wave perspective, indicating that Bitcoin has completed the first impulsive Wave 1, with Wave 2 expected to be bullish. The creation of a corrective ABC pattern further supports the idea of an impending decline.
Xanrox also identifies a small red trend line in the chart that is breaking down, along with a rising wedge pattern. Both of these technical patterns are viewed as bearish signals in the market. Moreover, the analyst points out the formation of a symmetrical triangle, which is expected to break down, leading to a decrease in Bitcoin’s price.
Since the initial analysis was shared on May 29, Bitcoin has already broken below $68,000, aligning with Xanrox’s prediction. In the updated post, the analyst mentions that another red trend line is now breaking down, painting a negative picture for Bitcoin’s price in the near future. The formation of a symmetrical triangle further supports the argument for a price decline.
According to Xanrox’s original chart, Bitcoin could potentially decline towards the $62,000 level, representing a more than 10% drop in price. This significant decrease could have ripple effects across the entire cryptocurrency market. The analyst advises caution during the summer months, as price action tends to be less volatile for Bitcoin during this period.
At the time of writing, Bitcoin is trading just below $68,000 with a 2.7% loss in the last week. Despite this short-term decline, the monthly performance of Bitcoin remains positive, with a 10.28% increase in value.
Xanrox’s analysis provides valuable insights into the potential future trajectory of Bitcoin’s price. It is important for investors and traders to closely monitor these indicators and patterns to make informed decisions in the ever-changing cryptocurrency market.
