On January 19, Bitcoin traded close to $9,200, but the rest of the week has seen the digital currency dropping near $8,200. Sunday treated Bitcoin well, however, boosting it from $8,300 to near $8,600, and it is now inching to $8,800 — which is the digital currency’s immediate barrier for a $9,000 return.
In spite of the slight uptick with an achievable shot at higher prices, a few analysts think the way that Bitcoin is trading signals an impending slump. As indicated by the analysis of the trader Haejin, BTC might crash to $3,300.
With 66K twitter followers, Haejin, on Friday, tweeted a chart showing explicit signs that the technical picture for the flagship cryptocurrency hints bearishness. There’s a fact that Bitcoin could not get above the 200-day moving average. One more is the rising wedge which price traded out of as well as a failure to get over a critical macro resistance.
Haejin noted that the scene is very similar to what happened in the 2018 bearish market at the time when prices were sloping on a downward price channel, along with a lowering volume, a few signs of capitulation as well as a similar upward wedge-formed false breakout.
He points out that Bitcoin might trade at $3,300 prior to the halving in case it followed the same trading pattern that it followed two years back.
Another analyst, Yashu Gola cries bear, yet he uses the death cross as the basis for his call. The death cross happens when a short-term moving average crosses below the long-term sliding average. Similar to that of Haejin, the path that Bitcoin is freewheeling is the same that was in 2018, and a death cross was noticed at that time, which mired Bitcoin in a year-long bear course.
Now, the question is that in case these predictions happens to be true at least before the halving, then will the bulls find the cheaper value an attractive spot to purchase the cryptocurrency?