The cryptocurrency market has been met with a wave of uncertainty as a prominent crypto strategist, known as Xanrox, has predicted a potential downturn in the price of Bitcoin. Despite the recent surge in price that saw Bitcoin climb above $70,000, Xanrox’s analysis suggests that the market may be entering a bearish phase.
Xanrox first shared his analysis on the TradingView website, highlighting various indicators that point towards a price retrace for Bitcoin. One key indicator mentioned is the “FVGAP” that was created at $62,000, signaling a potential bullish trend for the digital asset. According to Xanrox, gaps like these are typically filled sooner rather than later, indicating an imminent retrace in price.
In addition to the FVGAP indicator, Xanrox also references the Elliott Wave perspective, noting that Bitcoin has completed the first impulsive Wave 1. As per Elliott Wave theory, the next wave, Wave 2, is expected to be bullish. However, Xanrox points out the creation of a corrective ABC pattern, suggesting a potential decline in price.
Further supporting his bearish outlook, Xanrox highlights a small red trend line that has formed in the chart and is currently breaking down. This, combined with the rising wedge pattern spotted by the analyst, sets the stage for a potential decline in the Bitcoin price.
Since Xanrox’s initial analysis, Bitcoin has already broken below $68,000, lending credibility to the strategist’s prediction. Updated posts from Xanrox indicate that additional red trend lines are now breaking down, reinforcing the negative outlook for Bitcoin. Moreover, the formation of a symmetrical triangle suggests a potential downward breakout in the near future.
According to Xanrox’s original chart, Bitcoin could see a breakdown towards the $62,000 level, representing a significant 10% decline in price. Such a move could have far-reaching implications across the cryptocurrency market, impacting prices of other digital assets as well.
In light of the current analysis, Xanrox maintains a bearish stance on Bitcoin, cautioning investors to tread carefully during the summer months. As of now, Bitcoin is hovering just below $68,000 with a 2.7% loss in the last week. While the monthly gains remain positive at 10.28%, the short-term outlook appears bleak based on Xanrox’s technical analysis. Investors are advised to monitor the market closely for any further developments.
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