Bitcoin’s latest rebound is “fakeout” according to one analyst who thinks that the ongoing upside move risks exhaustion as we are reading more in our latest Bitcoin news.
Bitcoin increased during the weekend and continued trading upwards as traders weighted in the bullish prospects against the crashing US dollar. However, one analyst thinks that bitcoin’s latest rebound is “fakeout” and will exhaust by the end of the week. Marc Principato who is the executive director at Green Bridge Investing said that BTC could still head towards $16,000 which is a strong support level that it was targeting upon the correction from the yearly high of $19,500. Principato saw the sharp pullback during the weekend session as “fakeout” which basically stands for “Fake Breakout.”
The analyst concluded a bearish scenario based on the Elliot Wave Theory indicator and the market cycle also completes when its impulse phase forms five waves from its basic form while the corrective phase forms three. According to Principato, the BTC price will now form a new wave which is the second one against the total five. There was an inside bar that was established a few days ago and the new high was compromised which only constitutes a new buying signal:
“BUT a signal alone is not enough. The 3K point bearish move is likely still in play and there is a good chance that the first retrace attempt will fakeout [Wave B in Elliot Wave]. So it does not qualify for a new swing trade long.”
CEX’s Executive Director Konstantin Anissimov expressed his bearish bias on the market only using a different technical indicator and says that the TD sequential indicator presents selling signals on the weekly charts:
“The bearish formations developed as green nine candlesticks, suggesting that a one to four weekly candlesticks retracement is underway.”
In the meantime, he expected the BTC price to fall lower than what Principato predicted which is to $13,000 adding that a “weekly candlestick close above the recent highs will invalidate the bearish outlook and will lead to another leg up.” A close above the $19,500 level is possible as well since the US dollar is crashing, creating an ideal setup for BTC to continue to rally upwards. Recently, Guggenheim Funds Trust filed an amendment as well with the US Securities and Exchange Commission in order to put 10 percent of its reserves to Grayscale’s BTC Trust which amounts to $500 million.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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