Bitcoin Price Still Has Potential to Dive to $5,500, Yet Macro Uptrend Still Intact

Last week, the one-week Bitcoin chart printed an extremely bullish sign: the golden cross of the 50-week and 100-week simple moving averages, with the former crossing above the latter. (As an aside, a golden cross is when a short-term moving average crosses over a long-term one to imply bulls have control.)

While this is a decidedly bullish sign in the long term, with this signal preceding the 1,000%+ rally seen between 2016 and the end of 2017, a leading analyst has remarked that Bitcoin is still susceptible to one final downturn before an eventual return to the macro uptrend.

Related Reading: Bitcoin Poised to Collapse Under $5,000? Market Cycle Fractal Suggests So

One More Dump to $5,500?

CryptoBirb, a strong proponent of the positive effects the aforementioned golden cross will have, recently noted that Bitcoin still has the potential to see one final dump to $5,400-$5,600 — 23% lower than the current price of $7,150. This coincides with the long-term 0.786 Fibonacci Retracement level.

He noted that this would corroborate a trend seen in previous market cycles, which saw BTC see a bullish throwback prior to a resumption of a parabolic uptrend.

Birb’s suggestion that Bitcoin will see one more drop lower has been corroborated by other analysts.

Cold Blooded Shiller, a popular cryptocurrency trader, noted that Bitcoin is in a “markdown from distribution” near the $13,000-$14,000 top, a markdown contained by a descending channel that has existed since the top of the recent bull run.

As it stands, Bitcoin at $7,400 is in the middle of the channel, seemingly in no man’s land, thus not close to a bottom.

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