It seems that a crypto strategist who accurately predicted the current Bitcoin downtrend may have more insight to offer about where the price is headed next. The decline in the crypto market that was initially predicted may only be in its beginning stages, according to the analyst. This warning came at a time when the rest of the market was still enjoying the euphoria of Bitcoin climbing above $70,000. Xanrox, the crypto analyst, took to TradingView to share their analysis, pointing to indicators that suggest a potential Bitcoin price retrace.
One of the indicators that Xanrox highlights in their analysis is the “FVGAP” that was created at $62,000. The analyst explains that such a gap can signal a bullish trend for Bitcoin, especially if it is filled sooner rather than later. Additionally, the Elliott Wave perspective is brought into the picture, with Xanrox pointing out that the Bitcoin price has completed the first impulsive Wave 1. The market moves in waves, and the next wave, Wave 2, is expected to be bullish.
Xanrox also mentions the creation of a corrective ABC pattern and points out a small red trend line that has already broken down on the chart. Breakdowns in trend lines are typically bearish indicators. Furthermore, the analyst identifies a rising wedge pattern in the chart, which adds to the case for a potential decline in the Bitcoin price.
Since the initial analysis was posted on Wednesday, May 29, the Bitcoin price has indeed broken down below $68,000, aligning with Xanrox’s prediction. The analyst has followed up with additional insights, noting that another red trend line is now breaking down after the first one. This paints a negative picture for the Bitcoin price in the near future. Additionally, a symmetrical triangle formation in the chart is expected to break down, leading to a further fall in the price.
Xanrox’s original chart indicates a potential breakdown towards the $62,000 level for Bitcoin, which would represent a more than 10% decline in price. This significant drop could have ripple effects across the entire market. The analyst warns investors to be cautious during the summer, as price action for Bitcoin may not be as volatile during this season.
As of the time of writing, Bitcoin is trading just below $68,000, with a 2.7% loss in the last week. However, the monthly performance for the pioneer cryptocurrency remains positive, with gains of 10.28%. This mixed signal leaves investors wondering what the next move for Bitcoin will be and whether Xanrox’s predictions will continue to hold true in the coming weeks.
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