- Bitcoin’s price action has been bearish as of late.
- Nevertheless, the biggest bull in Crypto Twitter sees a reversal in the horizon.
- Other traders do not share an optimistic outlook and bet on a bitcoin plummet to $6,000 levels.
To say that crypto enthusiasts have turned bearish on bitcoin would be an understatement. The number one cryptocurrency is now trading below $8,000. The chart looks ugly and it gives very little reason to be bullish.
The cryptocurrency has been in a slow bleed ever since it climbed as high as $10,350 on Oct. 26. At that point, many thought that bitcoin would restart its bullish trend. Unfortunately, long positions got liquidated as the digital asset dumped.
Bitcoin in the Process of Reaccumulation
Bitcoin has been painful to watch over the last few weeks. The cryptocurrency lost all bullish steam while volatility was being slowly sucked out of the window. This is often a sign of distribution where the smart money investors gradually take profits.
Majin, however, sees the exact opposite. The trader believes that the smart money investors are accumulating BTC in preparation for the next leg up. The analyst told CCN,
I interpret the entire $7,400 and $10,00 range as reaccumulation. So the short-squeeze went to the top of the range.
The short squeeze that the trader’s referring to is the move above $10,000 on Oct. 26. Majin added,
The slow-bleed since has been reaccumulation, absorption of supply, and preparation of a new rally. I expect [bitcoin] to start drifting up from here.
Majin’s analysis came with bitcoin’s weekly chart. The chart shows that the cryptocurrency is still respecting the uptrend line with…