Prominent crypto analyst Peter Brandt says we’ll soon find out if Bitcoin’s fourth long-term parabolic bull phase is intact.
Brandt and fellow analyst Mike Cautillo point out that Bitcoin has a history of suffering extremely sharp crashes in the midst of overall bull cycles.
Until BTC’s upward trend is re-confirmed, Brandt says he plans to sit on the sidelines.
Crypto traders at large are extremely fearful that Bitcoin is poised to continue its dramatic downward spiral.
According to the fear and greed index from Alternative.me, the needle is now locked at 24 in the “extreme fear” zone. The index analyzes market volatility, social media and surveys to track the overall sentiment among crypto traders.
It was created by the developers of Strawpoll.com and Thundercheck.org, who say that when traders are fearful, a market correction is typically underway.
“Extreme fear can be a sign that investors are too worried. That could be a buying opportunity. When investors are getting too greedy, that means the market is due for a correction.”
Crypto analyst Scott Melker says $7,440 is now the key number to watch.
If BTC can stay above that number in the short term, he believes a significant upward movement is likely.
“$7,440 is an important level for me. Key support, and any price action above this would result in significant hidden bullish divergence with RSI on this time frame. Will be watching this area if we continue down.”
But not all analysts are as optimistic.
Josh Olszewicz says Bitcoin is now facing a possible retest of previous support from back in April.
Olszewicz is mapping a potential drop to just below $5,000 – a level that BTC briefly paused at before beginning its parabolic rally to just over $14,000 earlier this year.
Bitcoin is down 4.92% at $8,030 at time of publishing, according to CoinMarketCap.