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Bears are back, and they’re back with a vengeance. As of the time of writing this, Bitcoin (BTC) is trading at $7,100, having plunged as low as $6,800 — an extremely important long-term price level. The cryptocurrency market is down some 8% in the past 24 hours, and seems poised to tumble lower.
With that said, where will Bitcoin bottom? When will the pain finally stop for the leading crypto asset, which has drawn down from $14,000 to $7,000 over the past few months with little signs of stopping?
Related Reading: Bitcoin Price Jumped 42% Last Time It Hit This Level, and BTC Has Tapped It Again
According to a well-known analyst, $5,100 is the point where BTC will find a definitive bottom — if it gets there, anyway. Here’s why.
Why Bitcoin Drop Likely to Bottom at $5,100
According to a recent message from analyst Mac, $5,100 will be the ultimate bottom for this bearish move.
Firstly, he noted that the trend remains bearish, despite the support found at $6,800 and the bounce. The analyst backed this point by looking to BitMEX’s open interest, which is “keeping stable and increasing,” implying that few shorts are taking profit and buyers continue to open longs.
Mac continued that Bitcoin loss the June volume-weighted average price level, and has entered a “void” in the cryptocurrency markets that could see BTC easily continue into the low-$6,000s.
https://twitter.com/MacnBTC/status/1197895108038930440
As to why $5,100 — 25% lower than the current price of $7,000 — will be the bottom, Mac looked to a confluence of price levels: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.
Related Reading: Echo Bubble Narrative Grows Stronger as Bitcoin Struggles to Find Support
Not everyone agrees with this sentiment though. In fact, prominent gold proponent Peter Schiff recently brought up the idea that Bitcoin will return to $1,000, where it was trading prior to the 2017 bull market.
More specifically, Schiff said that Bitcoin is nearing the neckline of a head and shoulders chart pattern, which suggests that if it’s broken, a measured move to $1,000 will be had.
Related Reading: Bitcoin Nears Key Golden Cross as Price Falls to $7,400: Bull Case Alive
Featured Image from Shutterstock
