Crypto Analyst Warns of Potential Bitcoin Market Correction
A popular crypto analyst is cautioning that Bitcoin (BTC) might experience a market correction before the year ends, citing historical patterns. The trader, known as Rekt Capital, suggests that if BTC follows the same trend observed in 2015 and 2019, it could drop to $20,000 this year.
Indicators Pointing to a Possible Dip
Rekt Capital highlights two key indicators that support his prediction of a Bitcoin dip. Firstly, there is a gap in trading activity on the Chicago Mercantile Exchange (CME) at around $20,000. If BTC continues to form lower highs, it could potentially fill this gap later in the year or early 2024.
Secondly, Bitcoin has fallen below its 50-week exponential moving average (EMA), which historically resulted in a 20% retracement. If this pattern repeats, the price could drop to approximately $21,000, aligning with the location of the daily CME gap.
Potential Invalidating Factors and Future Predictions
The trader notes that his prediction of a Bitcoin dip could be invalidated if BTC manages to break past a crucial resistance level. However, he believes that Bitcoin is unlikely to reach the $31,000 level until after the next halving event in April 2024. Following the halving, Rekt Capital predicts a parabolic rally that will propel BTC above $65,000.
Bitcoin’s Current Status
At present, Bitcoin is trading at $26,646, experiencing a 1.3% decline over the past 24 hours.
Hot Take: Potential Market Correction for Bitcoin
A crypto analyst warns of a possible market correction for Bitcoin, drawing parallels to historical patterns. If BTC follows previous pre-halving years, it could drop to $20,000. Indicators supporting this prediction include a trading gap on the CME and Bitcoin’s dip below the 50-week EMA. However, if BTC surpasses a key resistance level, the dip may be invalidated. The analyst also believes that Bitcoin won’t reach $31,000 until after the next halving event in April 2024. Following the halving, a parabolic rally is expected to propel BTC above $65,000.
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