Bitcoin (BTC) has been leading the news lately. As featured on many best cryptocurrency news sites, the most dominant cryptocurrency finally managed to mount a comeback and go over the $10,000 region, trading safely at $10,500 and more. However, one analyst sees Bitcoin to visit $7,500 and drop soon, pointing out that the current price action only confirms the idea that the market may soon undergo another retracement.
As the analyst noted in the latest cryptocurrency news, Bitcoin to visit $7,500 is a scenario which may lead to a major drop where BTC and probably most altcoins would lose a third of their value.
The analyst is named Il Capo of Crypto. He recently posted a tweet predicting Bitcoin to visit new lows and showing a technical analysis and two charts – one for Bitcoin and another for gold, comparing the 2012 to 2013 gold action to the Bitcoin price action (12 hour chart) from June to now.
As he said, there are clear similarities between the two charts. A series of lower highs and higher lows, the assets retracing after their RSI reached “overbought” levels and clear interactions with the key Fibonacci Retracement levels. All of this leads Bitcoin to visit $7,500 in the coming months, he believes.
— il Capo Of Crypto (@CryptoCapo_) September 3, 2019
Capo was featured in the coming altcoin news for writing that if this plays out, BTC will soon lose support at $9,500 and a drop to $7,200 and $7,500 will follow, where a key Fibonacci retracement support should play out.
Gold drop also began with an ending diagonal.
— il Capo Of Crypto (@CryptoCapo_) September 5, 2019
Capo is not the only analyst who is currently expecting Bitcoin to potentially drawback further. As he showed, the most likely scenario is for Bitcoin to visit lower regions and “bleed our way to $7,400 in a falling wedge” to bottom in early November. He pointed out that BTC is clearly in a declining wedge with a downward sloping wave backdrop, implying that a further correction is entirely possible.
I think this is the most likely scenario for $BTC
Bleed our way to 7.4K in a falling wedge bottom in early November
From there we push in to breakout and throttle full force, making our way back above $10K late November or in December and set course for near ATH towards halving pic.twitter.com/j5lXXkuqYT
— //Ethereum 𝕵ack 🐐 (@BTC_JackSparrow) September 7, 2019
However, while the fractal and technicals are pointing towards downward price action, fundamentals suggest that the demand for Bitcoin should only be growing, potentially putting off any notable retracement.
What’s positive, as many predict, is the May 2020 Bitcoin block reward reduction (from 12.5 BTC to 6.25 BTC per block) which will cut the number of coins issued per block and potentially trigger the BTC price to grow to new heights.
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