Crypto Strategist Who Predicted Bitcoin Rejection At $70,000 Reveals Where Price Is Headed Next
Crypto strategist who accurately And he expected Bitcoin's current downtrend showed where the price goes from here. If the analyst's predictions are correct, the decline in the cryptocurrency market may only be in its early stages.
Bearish indicators of a Bitcoin collapse are accumulating
Earlier this week, when the cryptocurrency market was still rejoicing as Bitcoin rose above $70,000, cryptocurrency analyst Xanrox was one of the few to talk about a possible price drop. The analyst took to TradingView to share this analysis, showing that indicators point to a decline in the price of Bitcoin.
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According to the analyst's initial post, Bitcoin will collapse in June and the reason lies in the price action seen in May. One of the indicators that Xanrox points to is the “FVGAP” created at $62,000, and as the analyst explains, this could indicate an uptrend for the digital asset. This is mainly because this gap created at $62,000 is being closed “sooner rather than later”, indicating that a correction could happen soon.
Another indicator that the analyst refers to is the Elliott Wave perspective, indicating that Bitcoin price has finished the first impulsive wave 1. Naturally, with the market moving in waves, the next wave, wave 2, is expected to be bullish. But that's not all, as Xanrox suggests creating a corrective ABC pattern from here.
Last but not least, the analyst points out a small red trend line that has formed in the chart and is already breaking down. Such breakouts in the trend line are bearish. Add to that the rising wedge pattern that the analyst sees in the chart, and it seems like a perfect recipe for a decline.
Xanrox initially published its analysis on Wednesday, May 29, and since then, Bitcoin's price has fallen below $68,000, suggesting that this prediction may come true. As a result, the analyst has now updated the post, explaining which direction the price could head next.
Next steps for BTC
In follow-up posts, Xanrox notes that another red trend line is now breaking down after the first one. With two in a row, it paints a very negative picture for the Bitcoin price from here. In addition, the cryptocurrency analyst revealed that Bitcoin price has formed a symmetrical triangle, which he predicted will collapse. When this happens, the price is expected to fall.
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As for how far Bitcoin could fall from here, the analyst's original chart shows a breakdown towards the $62,000 level. This means a drop of more than 10% in price, which could shake prices throughout the market. “Right now, I am bearish, so be careful during the summer because the price action is not the most volatile for Bitcoin during this season,” the analyst warned.
As for Bitcoin, it is currently just under $68,000, at the time of writing, with losses of 2.7% in the past week. However, the monthly index remains in the green for the leading cryptocurrency as it sees gains of 10.28%.
Featured image created with Dall.E, chart from Tradingview.com
