Given the history of bitcoin to retest key Fibonacci levels, it may indicate that the leading cryptocurrency is likely to see bearish short-term. Bitcoin dropped to mid $6,000 levels from $7,000 later last week. The leading cryptocurrency is expected to fall to $5,300 in the coming days if technical analysts are to be believed.
BTC could retest the low $5,000s before seeing another extended rally.
— CRYPTO₿IRB (@crypto_birb) April 10, 2020
According to the crypto analyst known as Crypto Birb, the leading cryptocurrency bitcoin could retest the low $5,000s before it sees another extended rally. The crypto trader also shared a chart that identifies $5,300 as the 0.618 Fibonacci level for Bitcoin in the short-term. Technical analysts usually consider the 0.618 Fibonacci level as crucial short-term support, also known as the golden ratio of 0.168, this level is also used in other mathematical applications such as galaxy formations and architecture. Historical data shows that BTC gravitates towards major Fibonacci levels multiple times in a short period. Such retracements occur as bitcoin witnesses extreme volatility swings.
Bitcoin falls below $6,700 level as short-term prediction remains bearish.
At the time of writing, bitcoin is changing hands at just above $6,600 level, over 3.3% down in the last 24-hours. The short-term prediction for bitcoin is still quite bearish as the price of the leading cryptocurrency is expected to fall in the coming weeks. Besides technical reasons, other price indicators are also suggesting a drop in the price of bitcoin. Bitcoin still seems to be coupled with traditional financial markets, which are suffering due to the global pandemic as several countries around the world continue to remain under lockdowns.
BitMEX CEO Arthur Hayes also predicted that bitcoin could retest $3,000 level in the coming weeks because of the crash in financial markets, and all asset class could puke, and bitcoin is also not immuned the looming global recession. Bitcoin’s Relative Strength Index is also at the lowest level for the first time while heading into a halvening event.