Crypto strategist who exactly predicted Bitcoin’s current downtrend has shown where the price is heading. If the analyst’s forecasts are credible, the decline in the cryptocurrency market may only be in its initial phase.
Bearish indicators are piling up amid the Bitcoin crash
Earlier this week, when the cryptocurrency market was still euphoric after Bitcoin’s surge above $70,000, cryptocurrency analyst Xanrox was one of the few to claim a possible price drop. The analyst shared this analysis on TradingView, where he showed that indicators point to a rebound in Bitcoin price.
According to the analyst’s first post, Bitcoin will crash in June and the reason is the price action that was seen in May. One of the indicators that Xanrox is pointing to is “FVGAP,” which was formed at $62,000 and, as the analyst explains, this could signal a bullish trend for the digital asset. This is mainly because the gap created at $62,000 has been filled “sooner rather than later,” suggesting that a rebound could occur soon.
Another indicator the analyst points to is the Elliott Wave Outlook, indicating that Bitcoin’s price has completed the first impulsive Wave 1. Naturally, when the market moves in waves, the next wave, Wave 2, is expected to be bullish. But that’s not all, as Xanrox points to the formation of a corrective ABC pattern from here.
Finally, the analyst points to a diminutive red trend line that has formed on the chart and is already breaking down. Such breakouts of the trend line are bearish in nature; add to this the rising wedge formation that the analyst sees on the chart, and it seems to be the perfect recipe for a decline.
Xanrox initially released its analysis on Wednesday, May 29, and Bitcoin has since dropped below $68,000, suggesting this prediction may come true. As a result, the analyst updated the post to show where the price may be heading next.
Next steps for BTC
In subsequent posts, Xanrox indicates that another red trend line is breaking after the first one. Two in a row give a very negative picture of the Bitcoin price. Additionally, a cryptocurrency analyst revealed that the BTC price has formed a symmetrical triangle, which he expected to break. When this happens, the price is expected to drop.
As for how far Bitcoin could fall, the analyst’s original chart shows a breakdown towards the $62,000 level. This would mean a price drop of more than 10%, which could shock prices throughout the market. “I am currently bearish, so be careful in the summer as Bitcoin price action is not the most volatile this season,” the analyst warned.
As for Bitcoin, at the time of writing it is currently trading at just under $68,000, with a loss of 2.7% in the last week. However, the monthly remains green for the pioneering cryptocurrency as it records gains of 10.28%.
Featured image created with Dall.E, chart from Tradingview.com
