- Bitcoin has undergone a strong drop since the highs of $19,500 seen last week
- A historically accurate analyst says that further losses are likely for the cryptocurrency
- The analyst shared a chart showing that Bitcoin is likely in the midst of trading in a dead cat bounce prior to further losses
- He cited the Elliot Wave form of technical analysis, which predicts that markets move in predictable waves.
Bitcoin Could Drop Toward $15,000
Bitcoin has undergone a strong drop since the highs of $19,500 seen last week. Even after a strong recovery from the lows, the leading cryptocurrency trades for $17,600, far from those highs.
Analysts are mixed over what this correction means for the Bitcoin bull market: some think that the drop was a necessary correction before a stronger move higher. Others think that the drop is the start of a bigger correction that will likely end in the coin falling toward the $12,000-14,000 technical region.
A historically accurate analyst is currently leaning toward the latter option.
The trader recently shared a chart showing that Bitcoin is likely in the midst of trading in a dead cat bounce prior to further losses. This next drop, the analyst suggests, could bring the cryptocurrency toward the $15,000 region.
The chart below was shared along with this assertion. The chart shows Bitcoin’s recent price action, along with the assertion that it may be trading in an Elliot Wave pattern that may take it to $15,000:
“you love to see it, looking for another pop higher into 18k before opening some shorts. to me this is a clear abc up after a 5 wave decline, and complacency looks to be kicking in.”
The trader that shared this chart is the same one that in the middle of 2018 predicted that Bitcoin would fall as low as $3,200. He was proven almost exactly correct when the coin bottomed on top exchanges at $3,150 just months later.
Chart of BTC's price action over the past week with an Elliot Wave analysis by historically accurate analyst Benjamin (@SmartContracter on Twitter) Source: BTCUSD from TradingView.com
Not the Only One That Thinks So
This analyst is far from the only one expecting a further drop.
Bob Loukas, a crypto cycle analyst, noted that the cryptocurrency regularly fell by 30% last market cycle, prior to moving to new highs:
“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. The 2 months later a sharp rally, new ATH’s, and double boom 34% decline. Never a one way street.”
Bitcoin has only dropped by around 15% from its highs. A full-blown 30% correction would mean that it drops to the $14,000 region.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Predicted Bitcoin's 2018 Lows Says Another Drop Is Likely