A crypto strategist who is accurate predicted Bitcoin’s current downtrend has shown where the price goes from here. If the analyst’s prediction comes to anything, the crypto market’s decline may only be in its early stages.
Bearish indicators are piling up for a Bitcoin crash
Earlier this week, when the crypto market was still euphoric with Bitcoin climbing above $70,000, crypto analyst Xanrox was one of the few to speak of a possible price drop. The analyst took to the TradingView website to share this analysis, where he showed that indicators point to a Bitcoin price recovery.
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According to the analyst’s first report, Bitcoin is going to crash in June and the reason lies in the price action seen in May. One of the indicators Xanrox refers to is the “FVGAP” which was created at $62,000, and as the analyst explains, this could signal a bullish trend for the digital asset. This is mainly because this gap created at $62,000 will be filled ‘sooner rather than later’, suggesting that the bounce back could happen soon.
Another indicator the analyst points out is the Elliott Wave perspective, which suggests that Bitcoin price has ended the first impulsive Wave 1. As the market moves in waves, the next wave, Wave 2, is naturally expected to be bullish. But that’s not all, as Xanrox points to the creation of a corrective ABC pattern from here.
Last but not least, the analyst points out a small red trendline that has formed on the chart and is already breaking down. Such trendline breakdowns are bearish; Add to that the rising wedge pattern that the analyst sees on the chart, and it seems like a perfect recipe for a decline.
Xanrox initially posted its analysis on Wednesday, May 29, and since then the Bitcoin price has fallen below $68,000, suggesting this prediction could come true. As a result, the analyst has now updated the note, indicating where the price could go.
Next steps for BTC
In the follow-up posts, Xanrox points out that another red trendline is now breaking after the first. With two in a row, it paints a very negative picture of the Bitcoin price from here. Furthermore, the crypto analyst revealed that the BTC price has formed a symmetrical triangle, which he expected to break. When this happens, the price is expected to drop.
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As for how far Bitcoin can fall from here, the analyst’s original chart shows a breakdown towards the $62,000 level. This would mean a price drop of more than 10%, something that could shake prices across the market. “Currently I am bearish, so be cautious during the summer as the price action is not the most volatile for Bitcoin this season,” the analyst warned.
As for Bitcoin, it is currently just below $68,000 at the time of writing, having lost 2.7% in the past week. However, the month remains green for the cryptocurrency pioneer as it posts a gain of 10.28%.
Featured image created with Dall.E, chart from Tradingview.com