- Bitcoin (BTC) is still in a bearish zone
- BTC price might plunge by dozens of percent from here
- Bitcoin (BTC) indicators still look bullish on the mid-term
Bitcoin News Today – The price trend of Bitcoin (BTC) has been pretty poor over the past couple of days. The digital currency has been showing some signs of weakness after an increase of about 40 percent this month. Since the digital currency tested the new 2020 high of $9,200 about 7 days ago, BTC has lost more than 11 percent of its price. The digital currency has even plunged to the low of $8,200 but it has slightly recovered over that level at the time of writing.
The price of the Bitcoin seems to have found a local bottom, with the selling pressure abating. However, a BTC analyst recently proposed an eerie fractal that says it is just a matter of time before the price of Bitcoin (BTC) drops by dozens of percent.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin’s Price Could Soon Plunge by 20 Percent
The past couple of weeks have been friendly to Bitcoin and the digital currency markets at large. Bitcoin (BTC) has been able to break out from several key downtrends, surging by dozens of percent since it tested the bottom of $6,400 in December 2019. This has been decisively bullish price action. Nevertheless, many analysts are pointing out that the current breakout is spookily reminiscent of the recent “China Pump” in October last year when President Xi Jinping endorsed blockchain.
The endorsement of blockchain technology by the President of China pushed the price of Bitcoin up by 40 percent in one day. There were also similarities in many indicators, in the directionality of the move and the formation of the price action. In a recent analysis, a full-time digital currency trader – Cold Blooded Shiller – pointed out that the similarities even goes beyond that, adding that the price of the digital currency may plunge by dozens of percent very soon.
Night night, forever. pic.twitter.com/reS29pZEtq
— Cold Blooded Shiller (@ColdBloodShill) January 25, 2020
In his tweet, he pointed out that when the digital currency started chilling out after the China pump last year, the price bounced off the 200-day EMA hastily. It was later rejected from a major support mark, only to plunge through the same moving average.
Bitcoin Bulls Will Soon Step In
Despite the recent downtrend of the digital currency, many believe that BTC bulls will soon step in, especially due to the forthcoming halving event. The CIO of Bitcoin fund Adaptive Capital – Murad Mahmudov – recently said in a tweet that it is almost impossible for Bitcoin to fall much further than it already has.
Furthermore, the Lucid SAR indicator just printed a bullish signal on a mid-term basis. The indicator printed its first buy signal in March last year before the price of the digital currency surged by 330 percent.