Over the past week, Bitcoin has done surprisingly well, rallying from the $6,100 price seen last Sunday to a weekly high of $7,200, outperforming a majority of assets. Unfortunately, analysts are warning of a breakdown to pre-recovery levels. There’s no doubt Bitcoin has done well over the past few weeks, rallying from the lows at $3,700 to the recent high of $7,200 as aforementioned. According to Nik Patel — an analyst and the author of the crypto trading bible, “An Altcoin Trader’s Handbook” — however, a weekly close under $7,000 will likely lead to a retracement to $5,680, which would be a 20% drop from $7,000. Patel’s chart indicates that $7,000 was the weekly high seen last week, making it important from a technical analysis perspective. Close this Weekly below 7000 and I'd expect to see 5680.$BTC pic.twitter.com/17fGXQm35p — Nik Patel (@cointradernik) April 4, 2020 A close under $7,000 seems likely; just hours before the weekly candle is set to close, Bitcoin saw a rejection at $6,900, falling back to $6,700. Although there are these signs of downside in the short term, many are growing convinced that the long-term outlook for Bitcoin is anything but bearish. Case in point, Anthony Pompliano of Morgan Creek Digital recently identified two fundamental trends that will act as “rocket fuel” for the rocket that is BTC’s price:Related Reading: The U.S. Dollar is Dying, Buy Bitcoin: “Rich Dad Poor Dad” Author
Could Bitcoin Drop 20%?
Related Reading: Crypto Tidbits: Bitcoin At $7,000, FATF Regulation, COINBASE Backs Ethereum DeFi
Long-Term Outlook Forming Bullish
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