How Bitcoin (BTC) Could Plunge To as Low as $1,700 In Coming Months, Crypto Analyst Says

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As the hype around the next Bitcoin (BTC) block reward halving starts heating up, it appears a bull reversal is inevitable. At least that’s what a leading crypto analyst thinks. The bulls may actually be preparing to run, and the bears might still have their last hurrah, as they draw blood savagely before hibernation.

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %
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bitcoin
Bitcoin(BTC)
$9,880.51
2.52%

Bitcoin (BTC) Could Reach as Low as $1,700 In the Next Few Months

Murad Mahmudov a Princeton University graduate and crypto analyst made the claim via a Twitter thread. Murad Mahmudov, who is also a digital currency trader and hedge fund hopeful, gave a theory highlighting why the “famous 200-week MA support” for the Bitcoin (BTC) price will inevitably break in coming months.

Bringing in the cryptocurrency market’s historical cycles, out of which three have reoccured so far, Mahmudov cited that the important 25 MA, 50 MA, 100 MA, and 200 MA shifted “‘one level’ backwards with each cycle.” Each multi-year trade or market cycle, the significance of each MA position decreases, as the averages pertaining to the longer time frames fall into their positions.

Hence, a reason why Mahmudov remarked that as is the case with the 200-week MA was a level of the utmost importance for Bitcoin (BTC) from 2015 to 2018, then the 300 MA (and potentially 400 Ma as well) will be integral trendlines to watch out for in coming months.

Mahmudov: Bitcoin’s (BTC), Steady Support via the 300 MA, is $2,400

Going by Mahmudov’s theory that the digital currency market rhymes, the crypto analyst subsequently prepared an investment thesis for the Bitcoin (BTC) in the coming months. He did this citing the historical trends, and technical levels, as well as the underlying fundamentals. Following this, the trader reached the conclusion that he expects Bitcoin’s (BTC) “steady support” will be discovered at a 300 MA of about $2,400. However, the crypto trader made it clear that BTC could drop to as low as the 350 to 400 MA to the $1,700 range. Citing “past price patterns and how overstretched the 2017 boom was.”

Although Mahmudov presumably presented his analysis with the best of intentions, the analyst’s decision to make use of the 300 moving average made him to quickly take flak from his peers.

Mahmudov Remains Bullish for Bitcoin (BTC) in the Long Term

Putting the above theories and followup for Bitcoin (BTC) price actions aside, Mahmudov appeared to take a bullish stance on the Bitcoin (BTC) prince. At least from a long-term scenario. During an interview with fellow fervent crypto trader Tone Vays, Mahmudov insisted that he remains bullish, that he would not spend the top digital currency for ten years at least, because of the asset class potential to initiate an upside and asymmetric shift makes it nonsensical to spend Bitcoin (BTC) at the current rates.

Mahmudov added that digital currencies are typically like the Dotcom industry back in 1994 (a little bit minuscule with a potential for a dramatic upside move), but there are trillions of USD worth of equities that can potentially flow into Blockchain-powered tokens with time. Only time will tell if his predictions will come to pass.

 

 

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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