Over the past months, Bitcoin has continued to show a strong sign of weakness after hitting a year-to-date high of $13700 in June. Following the mid-year year bearish market, Bitcoin has seen a 52% downward correction to as low as $6600 before bouncing back to where it’s currently trading at $7200.
This week, after touching $7600 Bitcoin has dramatically dropped to $7200 yesterday due to a huge ask from the bear. The depth of the market was recently weighed on a supply force as the price could tank at $7000 if the bears continue to step into the market.
Apart from that, Bitcoin’s volatility has been normalized between the price ranges of $7000 -$7900 zones since the market recovers from the $6600 low on November 25. This is a strong indicator to a sideways movement, which means that BTC could be gearing for a major rally soon.
Today, a tweet shared by JOKER, a prominent crypto trader and analyst, has spotted Bitcoin to be forming a bearish flag pattern that is likely to send Bitcoin to $5k levels. He noted that if such a scenario occurs, the entire “crypto market will bleed 30% -50% more”. JOKER sends caution to traders who may intend to long Bitcoin at the moment.
#BTCUSD is forming a bearish flag or a wedge.
According to this indicator, #BTC falls to $5k levels eventually. That means $crypto market will bleed 30% – 50% more .
Given the increasing number of $btc longs: #joker calls for caution!#bitcointrading $btc #xrpcommmunity pic.twitter.com/B1YSIikCif
— JOKER (@KiaCrypto) December 11, 2019
Adding to the potential decline, Catering Clark also shared a view that Bitcoin seems to be finding a lower acceptance, mentioning a value area lows on the daily, weekly and monthly chart.
$BTC looking like it is starting to find acceptance lower.
Below weekly value area low, monthly value area low, and daily value area low.
Bid starting to drop off as well.
Will bulls try to keep this up one more time or are we on to find a new ground to start this over? pic.twitter.com/ek2i9FcraC
— Cantering Clark (@CanteringClark) December 11, 2019
Well, Bitcoin’s fractal display has been quite worrisome amongst traders for the past couple of days, causing a FUD in the market due to the fragile setup which may result to a huge loss for holders if the price falls at $5k. But on the other hand, it could be another opportunity to bag more BTC at a lower price in the above scenario.
However, if Bitcoin volumes and volatility remains insignificant and manages to trades under $7600 the next 7 days, the bullish rally would be suspended till the Q1 Bakkt Bitcoin coming in the year 2020. In this case, Bitcoin’s price may eventually find a reversal level at $5000 as predicted above.
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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.