An analyst who nailed Bitcoin’s pre-halving correction this year is laying out a worst-case scenario as BTC dips to $97,000.
The analyst pseudonymously known as Rekt Capital tells his 102,000 YouTube subscribers that Bitcoin is technically in a parabolic uptrend but could decline further based on historic precedence.
“We tend to see upside, but not without pullbacks…week six, week seven, week eight tend to be quite problematic for Bitcoin.”
He suggests Bitcoin, now in “week seven,” could plummet if it loses the support level of around $97,000 on the weekly timeframe.
“We’re actually losing weekly levels. And so if this blue region also gets lost as a support, and then we actually lose this five-week technical uptrend in this orange trend line, if all of these things are lost, then this is going to be mounting and mounting and mounting evidence that we might be transitioning from what is technically still a 10% dip, we might be transitioning into a pullback moment, and in fact, a corrective period.”
According to the analyst, Bitcoin’s decline could be between 29% and 40% before rallying again based on previous cycles.
“It’s really important to understand what those corrective periods have looked like in the past, and 34% has been something of a recurring theme in 2016, 34% in week eight. We had 34% when it came to confirming the first price discovery uptrend in the very beginning of that uptrend. We got 40%, 38% 29% in 2016-2017. So we’ve seen pullbacks take place which were quite deep in price discovery in the past.”
Bitcoin is trading for $97,158 at time of writing, down 3.4% in the last 24 hours.
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