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Bitcoin (BTC) has been caught in what can be accurately defined as a period of consolidation as of late and has been hovering around the lower-$11,000 region for the past several days, make fairly restrained price movements within a relatively tight trading range.
Now, one highly respected analyst is claiming that Bitcoin could either face an 80% correction in the coming weeks or months or could face a much smaller correction that results in a fresh parabolic uptrend that ultimately leads the cryptocurrency higher.
Bitcoin Stable in Lower-$11,000 Region, But Volatility is Likely Inbound
At the time of writing, Bitcoin is trading down just over 1% at its current price of $11,360, down slightly from its daily highs of $11,600.
Over the past week, Bitcoin has been trading between a relatively large trading range with a lower bound at roughly $9,600 and an upper bound at $12,000. Because BTC has not incurred any massive influx of buying or selling pressure, it is likely that this range will persist in the near-term.
Importantly, Bitcoin has been frequently testing a descending resistance line that has held strong for the past several days, but it does appear to be growing weaker which may signal that an upwards break is imminent.
“$BTC – first 6hr candle close outside the declining resistance line… lets see if #bitcoin can build on this,” Chonis Trading, a popular crypto analyst on Twitter explained in a recent tweet.
$BTC – first 6hr candle close outside the declining resistance line…lets see if #bitcoin can build on this … pic.twitter.com/B4mfAu42P8
— Big Chonis Trading? (@BigChonis) July 6, 2019
Analyst: BTC Likely to Correct Soon, But Will It Drop a Whopping 80%?
Although Bitcoin does appear to be close to breaking above its aforementioned descending resistance line, it is important to note that a notable correction could be imminent.
Peter Brandt, a highly celebrated analyst on Twitter, spoke about BTC’s current price action, noting that it could drop 80% if its current parabolic formation is violated.
“If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ definition of new parabola w/ shallower slope. $BTC Note formation of possible 2-wk H&S or H&S failure” he explained in a recent tweet.
If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ definition of new parabola w/ shallower slope. $BTC Note formation of possible 2-wk H&S or H&S failure pic.twitter.com/6IF1bHREAv
— Peter Brandt (@PeterLBrandt) July 7, 2019
Keeping Brandt’s analysis in mind, it does seem as though a correction is imminent, but only time will tell as to whether or not it will be a healthy correction that fosters long-term growth, or if the bear market will once again be back in session.
Featured image from Shutterstock.
