Crypto Watch: Bitcoin May Fall To $5K Following Forming Wedge – JOKER Calls For Caution

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.

https://twitter.com/CanteringClark/status/1204640627327225856

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.