Bitcoin is currently in a bearish zone and the bulls are losing pace. The selling pressure is quite high given that the virtual asset has experienced a downward move two days in a row. From around $8,700 on June 3, 2019, to $7,432 today which is over a thousand dollar loss. There may be more from where that came from since Bitcoin might soon fall back to the $6000 and $4000 levels.
A quick look at crypto charts reveals that there has been a 1.53 percent decline in Bitcoin’s price in the last 24 hours. It is, however, an 8.5 percent loss from last week Wednesday, but a 36 percent increment from the virtual asset’s price in the past 30 days. Nevertheless, crypto traders expect two scenarios to suffice and one is where Bitcoin surges again to break its current resistance of $8,200 or declines further from its current support of $7,400.
The second case scenario could be a possibility for a number of reasons. First of all, a correction was long overdue and it may have chosen this week to occur. Technical indicators on cryptocurrency analytics platforms have spat fire claiming that Bitcoin RSI (Relative strength index) is over 70, which is an overbought zone that is enough to trigger a pullback. However, the decline will most certainly come in stages before it finally sits between the $6000 and $4000 levels.
Cryptocurrency analysts, on the other hand, have given their opinion based on the historical performance of Bitcoin. One of such is from Josh Rager who noted that for the past four years, Bitcoin has pulled back in price by 30 percent after large extended rallies and the same can be expected in recent times.
Rager on May 21, 2019, said a 30 percent pullback is coming if we rely on the virtual asset’s historical performance. Also, these pullbacks will occur on the way to its next all-time high. Currently, there has only been a 12 percent correction in Bitcoin’s price and if the digital asset is to go with Rager’s 30 percent, then we still have a long way down to $6,400 since the year-to-date high is $9,100.
In another Tweet on June 4, 2019, Rager said:
“$BTC might be playing a bouncing ball game at support. Lower highs near support will give you fair warning before a likely break below $7600s.”
When Rager was asked if Bitcoin could dump below December’s lows of $3,200, he stated that the least he expects Bitcoin to pullback to is $5,500. Another trader, Crypto Dog also gave his stance on June 4, 2019, about Bitcoin’s downtrend when he said that the bull market is currently correcting but it is “not the end of a relief bounce in a bear market.”
In all this, Bitcoin’s pullback may not entirely be a bad thing since there are a lot of expectations that it could lead to new highs in 2019. The latter is the opinion of Bob Loukas who said if Bitcoin could retrace to $6,400, a level where the fireworks started in October 2018, then it would be a healthy retrace. It will fill the gap back to the 10-week moving average and lead to new 2019 highs.
These predictions from cryptocurrency analysts all hit on the same message and that is, corrections are natural. They also provide an opportunity to buy the dip and in the long run, a spike in price can be expected even though at this time, there’s still a slim chance that the virtual asset might collapse to $4,000 again.
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