The last few days have been very volatile for Bitcoin.
After reaching $ 10,100 approximately 48 hours ago, the cryptocurrency fell on Saturday and Sunday, falling by about $ 2,000 in 20 hours.
Bitcoin fell to $ 8,100 in a dramatic sell-off, liquidating $ 250 million in BitMEX longs.
While prices have made some recovery, with Bitcoin above $ 8,800, an analyst envisions a deeper adjustment for the flagship cryptocurrency.
He successfully predicted the adjustment of BTC to $ 6,400 in 2019, when the more popular position was that it was about to rise.
Despite a number of bullish technical indications, the analyst examines a fractal from a previous Bitcoin rally, which is very similar to the current one.
According to this model, the cryptocurrency should fall to about $ 6,400, which is the level of 50% fiberat retracement of the rally of $ 3,700. This would be a drop of approximately 25% of the current price.
While the trader expects a decline to $ 6,400, it remains bullish at the macro level.
Another analyst highlighted four factors that are a potential ‘ perfect storm ‘ for Bitcoin.
1 – Halving is coming. If demand remains the same after the event, a drop in supply should push the price up.
2 – Bitcoin shows potential as a hedge against economic shocks.
3 – The cryptocurrency made a strong rally in March.
4 – The dynamics of stock exchanges is changing. Supply in order books is thinning as there are more long-term asset holders and there are more spot spot purchases.