The crypto market has been a rollercoaster ride for investors, with the price of Bitcoin showing significant volatility in recent weeks. As the price climbed above $70,000, many were optimistic about the future of the digital asset. However, one crypto strategist, Xanrox, accurately predicted a downturn in the market and pointed out several indicators that suggest the decline may just be starting.
Xanrox’s analysis, posted on the TradingView website, highlighted a number of concerning signs for the Bitcoin price. One indicator, the “FVGAP” created at $62,000, has historically signaled a bullish trend for the digital asset. However, Xanrox pointed out that gaps like these are often filled sooner rather than later, indicating a potential retrace in the price.
Additionally, the analyst pointed to the Elliott Wave perspective, noting that the first impulsive Wave 1 has finished, with Wave 2 expected to be bullish. A corrective ABC pattern and a red trend line breakdown further support the prediction of a price decline. The rising wedge pattern on the chart also suggests a bearish trend for Bitcoin.
Since Xanrox’s initial post on May 29th, the Bitcoin price has broken down below $68,000, confirming the prediction of a potential crash. The analyst has updated the post to show that more red trend lines are breaking down, painting a negative picture for the future price of Bitcoin. The formation of a symmetrical triangle also indicates a likely price fall in the near future.
As for how far Bitcoin could fall, Xanrox’s original chart suggests a breakdown towards the $62,000 level, representing a significant 10% decline in price. This could have ripple effects across the entire market, shaking investor confidence during the summer months, which historically have not been the most volatile for Bitcoin.
At the time of writing, Bitcoin is trading just below $68,000, with losses of 2.7% in the last week. Despite this short-term decline, the monthly gains for the pioneer cryptocurrency remain positive at 10.28%. However, the indicators and analysis provided by Xanrox suggest that the price may continue to fall in the coming weeks.
The future of Bitcoin remains uncertain, with the potential for a significant price crash looming on the horizon. Investors should be cautious and closely monitor the market trends in the coming weeks to make informed decisions about their crypto holdings.
