Bitcoin Falling to $6K and still be bullish
June 26, 2020 7:38 am
Bitcoin (BTC) could crash to $6,300 or lower and still not disturb the long-term trend and remain bullish. On June 26, one trader declared as the largest cryptocurrency tested $9,000 support.
In a Twitter analysis, the popular trader SteveCrypto offered an option to the bearish viewpoint coming from markets this week.
A Healthy Correction
With BTC/USD circling $9,200, analysts are broadly risk-off. Extensive correlation with ailing stock markets has sparked many warnings that a failure to keep support at current levels could spell a new downturn.
For SteveCrypto, however, even a worst-case scenario would not necessarily spell the end of the Bitcoin bull case.
BTC/USD could hit $6,300 or even lower, he argued, and still retain its overall uptrend. The reason, he said, lies in the fact that a Fibonacci retracement level lies at $6,340.
“We could go as low as 6300 or even dip to 6k and still be bullish, In fact, it would even be a healthy correction right into the golden pocket of the 0.618 Fib level.”
BTC is Stuck
Fibonacci lines represent a keen area of interest for Bitcoin traders eyeing short-term support. A 61.8% retracement versus former highs is nothing new for BTC/USD — Bitcoin has shown an affinity for doing just that in recent times.
This time, in early June, have seen the declining of $6,340 relative to the recent highs of around $10,200. In April, the same theory called for a pullback to $5,300, a month after 2020 lows of $3,600. Such a scenario did not play out.
Meanwhile, BTC’s performance is likely to remain dictated by macro factors. On Thursday, veteran trader Tone Vays honked the alert about weakness in the S&P 500, together with a lack of nearby support levels.
“Like I’ve been saying for months now, I have no reason to walk away from my prediction early in the year that Bitcoin is going to get stuck between $6,000 and $10,000 for the majority of this year.”-Tone Vays