Is the bottom in? Since Bitcoin (BTC) fell precipitously to $6,600 late last month, analysts have been asking if the leading cryptocurrency has finally found a price bottom after a multi-month downturn.
Analysts have understandably divided over the question, as the correct answer would show in which direction Bitcoin will head for the next couple of months. Some are bullish, others are bearish.
Some suggest that there may be another drop before the crypto asset finally finds a bottom.
Related Reading: Should History Repeat, Bitcoin Price Will Drop 40% to Bottom at $4,300
Bitcoin Could Drop 20%, Analysts Warn
Top cryptocurrency analysis account BitcoinEconomics.io recently noted that they believe BTC “going down to $5500 in Q1 2020 seems a likely scenario,” adding that there is likely going to be another accumulation and shakeout phase before a slower uptrend.
BTC going down to $5500 in Q1 2020 seems a likely scenario. It may even touch $8k before that. More shakeout and accumulation before a sustained and slower upward trend is likely.
A few people predicted such a second smaller "bear market" in the first half of 2019. https://t.co/s9Px4SgUGr
— BitcoinEconomics.io (@BitcoinEcon) December 21, 2019
BitcoinEconomics’ analysis corroborates the sentiment of other prominent cryptocurrency traders.
According to a recent update from Jacob Canfield, a professional cryptocurrency trader, Bitcoin is not yet near a macro bottom in his eyes. He remarked that the cryptocurrency is likely to see a 20% drawdown from the current level of $7,200 to $5,500, for there is where the 0.786 Fibonacci Retracement of the rally from $3,100 to $14,000 lies.
What price do you guys have for the bottom on this #bitcoin downtrend?
I think we could see $5500 personally as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there. pic.twitter.com/2TSK8XhecH
— Jacob Canfield (@JacobCanfield) December 17, 2019
ReBirb added that this drawdown would validate a trend seen in previous market cycles, which saw BTC see a short-term bearish though macro bullish throwback to key support prior to a resumption of a parabolic uptrend.
Related Reading: Research Group: Bitcoin’s Halving Unlikely to Catalyze Bull Run, But Here’s What Might
But Isn’t the Bottom In?
While some fear that more downside is likely, there are technical and fundamental factors suggesting that the ultimate bottom of the recent downturn is in.
He followed this up with the post seen below, in which the prominent analyst remarked that he expects for Bitcoin’s one-week Moving Average Convergence Divergence (MACD) indicator to turn upward, which will kick off the next round of growth in the BTC market.
Predicting the weekly MACD about to turn up…. going according to plan. pic.twitter.com/xi0VJWojU0
— dave the wave (@davthewave) December 20, 2019
Related Reading: Bitcoin Price is Poised to Return to $6,500 Lows; Analysts Explain Why
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