While the crypto community is looking forward to a huge bullish Bitcoin move that will take it to a new all-time high, an analyst, ‘Financial Survivalism’, in a TradingView market analysis says the top cryptocurrency is likely to experience a much more severe pullback than it has experienced in the last few days. He says Bitcoin could crash to $9,000 once it rises to $12,400 again.
Financial Survivalism who said the market was overdue for a correction right from $5,800 through $8,000, cited three technical reasons why this is possible. First, he said Bitcoin will get the uptrend support it had from April till recently, thus preparing it for another big move.
Secondly, he affirmed longs may need to close their positions as BitMex hits very high level. He also cited a weakness from the Average Directional Index which is likely to affect the daily price.
Most analysts have predicted the opposite of what Financial Survivalism is saying though. Bitcoin is in fact expected to reach a new all-time high soon and although the market isn’t getting the kind of attention that was anticipated, these analysts still believe it is a sign that Bitcoin could go even higher.
Tom Lee of Fundstrat is one of such analysts. He had predicted earlier that the huge FOMO would hit the market once Bitcoin got to $10,000. The FOMO did not happen as expected and described this as an indication that Bitcoin is meant to go higher. Veteran trader Peter Brandt also agrees with this school of thought and is positive that Bitcoin could be going that high.
Bitcoin has already turned red at the time of writing this article although it is yet to recover to $12,400. It is currently trading at $11,800 but it is not clear if this trend will continue. According to Financial Survivalism’s prediction, the trend should change shortly until $12,400.
It is however left to the market to decide if Bitcoin crashes to $9,000 from $12,400 or keeps going to new highs, either way, some Bitcoin holders could benefit by taking profits and buying the dip while those who haven’t bought at all could have another chance to buy at a lower price.