If you’ve been on Crypto Twitter at all over the past few weeks, you’ve likely seen Peter Schiff claim that Bitcoin (BTC) is on the verge of returning to irrelevancy. More specifically, he wrote in a tweet published in November that per his analysis of the charts, there’s a possibility that the leading cryptocurrency could plunge to $1,000.
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This assertion has been echoed by a prominent trader. Per previous reports from NewsBTC, the cryptocurrency commentator, who has made a number of accurate calls in the past, wrote that he expects for Bitcoin to go “to the $1,000 range,” citing the sentiment that it would be “good for crypto” as it would “destroy investors and projects.”
According to a recent technical analysis, this prediction isn’t as crazy as it seems. Here’s why.
Bitcoin Needs to Hold 200-Week Moving Average
Over the past few weeks, a number of prominent analysts have called for Bitcoin to return to the $5,000s, 20% lower than current prices.
Trader CryptoBirb, for instance, remarked that BTC has the potential to see one final dump to $5,400-$5,600 — 23% lower than the current price of $7,150 — due to that level being the long-term 0.786 Fibonacci Retracement level. Former Wall Street trader Tone Vays and full-time cryptocurrency analyst Jacob Canfield have echoed this exact thought in their own analyses.
According to a trader who called the decline to the $6,000s when Bitcoin was trading in the $8,000s, Bitcoin needs to hold its 100-week moving average, currently at around $7,000. He claims that if this level is lost on a macro basis and drops to the $5,000s as the aforementioned traders expect, it will confirm “we have lost momentum to the upside,” confirming an Elliot C-Wave that will bring the asset to $1,000.
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Will Bulls Hold the Level?
With this in mind, you might be wondering if bulls can hold this key price level?
According to a number of analyses, Bitcoin will hold the level.
Dave the Wave, a prominent cryptocurrency chartist who called the decline to the $6,000s weeks ago, said that Bitcoin’s one-week Moving Average Convergence Divergence (MACD) is likely going to see a crossover early next year after trending lower for the next two months:
“Weekly MACD shaping up to re-cross bullishly soon to confirm the continuation of the next cycle,” the popular trader wrote.
Bullish MACD readings on Bitcoin’s one-week chart marked the start of previous bull runs, including the miniaturized one seen from March of this year to July.
This was followed by Willy Woo, partner at Adaptive Capital and noted on-chain analyst, opining in a tweet that his blockchain metrics indicators suggest BTC is in the midst of a “re-accumulation” phase of bull markets that always precede the parabolic rally. He added in another tweet that any move below $6,500 will only be a “wick in the macro view.”
Related Reading: Why the Bitcoin’s Bearish MACD Cross May Not Plunge Price
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