After hitting $6,600, Bitcoin (BTC) saw a strong price bounce, returning to $7,800 just yesterday. Though, analysts have asserted that the cryptocurrency market remains in a weak state, despite the nearly 20% recovery that has been seen over the past week.
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Bitcoin Looking Weak on Weekly
Popular trader NebraskanGooner that Bitcoin’s weekly chart looks bearish, again in spite of the fact that a recovery was seen after the strong move lower. The analyst specifically remarked that BTC failed to break the key 99-week simple moving average and a horizontal zone of resistance, before adding that the “increased buyer volume” narrative is a clear misnomer and that the on-balance volume indicator saw a bearish retest.
Weekly looks bearish
Logically one more slight lower low is psychological pain to a lot of people. Plenty of "break even" and "just below last wick" stop losses to hit
I expect slow bleed. Lots of dip buying and being stopped out. Then a fast dip with rapid absorption
— Nebraskangooner (@Nebraskangooner)
With that in mind, the cryptocurrency trader remarked that he expects for Bitcoin to see a “slow bleed” lower, which will be marked by investors trying to buy the dip and then being stopped out, then a “fast dip with rapid absorption” in the $6,000s.
Fractal Also Suggests Pain to Come
That’s not all. Per previous reports from NewsBTC previously, Nebraskan recently observed that a bearish fractal, when the historical price pattern or direction of an asset is reflected/seen again on a different time frame and/or for a different asset, is playing out for Bitcoin.
Nebraskan’s fractal has been extremely accurate over the past few weeks. In fact, it predicted Bitcoin’s dramatic price drop to $6,600 weeks before it took place, and the subsequent recovery to nearly $8,000 seen over the past few days.
The all knowing fractal says the top is likely in for now.
Trend line breakdown retest looks completed.
$6,300 incoming?
Will be interesting to see if this continues to play out.
— Nebraskangooner (@Nebraskangooner)
The same fractal, which is an overlay of one of Bitcoin’s previous market cycles, suggests that Bitcoin’s trend line breakdown retest, implies that BTC has found a local top at $7,800. Should the fractal continue to play out, BTC will head towards the $6,200-$6,300 region in the coming two-odd weeks, which would mark a drop of 20%.
Fundamentals may support this. UpBit, earlier this week, was hacked for $50 million worth of Ethereum, leading some to suggest that selling pressure from this event will depress the cryptocurrency market in the coming weeks. There has been also talk of how operators of the PlusToken cryptocurrency scam could be dumping 1,000s of Bitcoin a day, leading to a natural downtrend in price.
Related Reading: Make or Break: Bitcoin Price Closing In On Key Monthly Support Level
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