A historically accurate pattern is now occurring on the Bitcoin price chart suggesting that the digital asset could be set for a massive drop to the $3,000 levels. The recent Bitcoin trade pattern is creating an Elliot Wave that has traditionally preceded a huge price decline. This sighting has led crypto analysts to suggest that Bitcoin could be set to enter bear territory right before the halving event.
Bitcoin has recorded some substantial recovery with the digital asset price doubling from its recent bottom of $3,700. The cryptocurrency has risen steadily over the last few weeks reaching a high of $7,300 on April 3. However, a keen look into Bitcoin’s price performance reveals an Elliot Wave pattern forming on lower periods.
Analysts suggest that this is not necessarily a bearish indicator as an asset can revert to a bullish trend despite the appearance of an Elliot Wave on its chart. However, the analysts warn that for this to occur, an asset has to have substantial volumes and significant demand to push the price up.
theres so many different ways you could count btc here.
either wxy, larger triangle, larger flat, im not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives.
for this reason i think its still too early to call a bottom pic.twitter.com/WNBxJEcOdF
— Bluntz (@SmartContracter) April 3, 2020
Bitcoin’s price does not meet this condition as its daily trading volumes is declining. The spot volume on major crypto exchanges shows low Bitcoin volumes over the past few days. This is an ideal signal the reveals that actual demand from retail traders and investors is declining over time. According to analysts, this may have a huge bearing on the short-term Bitcoin price, as the low demand may not be sufficient to push price upwards.
This added to the fact that Bitcoin’s price has stagnated over the past few weeks in the $5,800 to $6,900 range paints a bleak outlook of the digital asset value at least in the short-term. Evidently, investors are shying away from making significant moves, as the markets remain stuck in limbo.
There is growing uncertainty about the direction that the market is going to take. As such, a significant majority have chosen to hedge their Bitcoin investments by accumulating stablecoins holding in anticipation of signals from the market. As earlier reported, there is over $7 billion held in stablecoins waiting for the opportune moment to be pumped into Bitcoin and other crypto assets.
This poor outlook thus satisfies the second criterion that supports the analysts’ case for Bitcoin plunging to $3,000 as the asset lacks substantial volume to reverse the pattern into a bullish trend.
Image courtesy of Pixabay
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