Kraken has filed for a public offering with a valuation of 20 billion dollars, and technology companies are announcing new partnerships with Saudi Arabia. Amid these developments, Bitcoin is trading at $89,700, with unsettling large red candles appearing again. Meanwhile, Roman Trading provides a more conservative prediction.
The Prophecy of a Crypto Savant
While Bitcoin is experiencing a downturn, altcoins are also rapidly losing value again. With Federal Reserve minutes expected to be released in two hours, analysts discuss expectations before Bitcoin’s decline accelerates. Roman Trading has been consistently predicting for three quarters that Bitcoin will hit rock bottom before reaching another all-time high. Based on the breakdown of weekly and monthly chart patterns, the analyst’s prediction seems accurate for now.
The analyst, who shared the above chart, suggests that Bitcoin will bottom out around $50,000 and recommends starting a Dollar-Cost Averaging (DCA) buying strategy thereafter. The strategy involves making regular purchases of a fixed amount, like $100, every week or month.
“If we reach that level, I plan to start DCAing around $50,000. We will see about a 60% drop from the all-time high – typically in every bear market, the drop is around 80% on average.
Is this the bottom? Probably not, but my plan is the same as in 2022: buy as much as I can when we’re close to the bottom.”
Views from Jelle and DaanCrypto
After the gloomy forecast in the first section, let’s consider more moderate analysts. In previous evaluations, we examined the reasons for the downturn in detail, so here I’ll directly share Jelle’s updated chart prediction.
“Bitcoin has recently dropped by about 29% from its all-time high. We are approaching deeper corrections near past dip levels of about 32%. This aligns with the double-bottom thesis, where the second dip is slightly lower, creating a deviation. Could this scenario repeat?”
If Bitcoin begins breaching the $90,000 mark, a deeper dip is likely to follow.
DaanCrypto looks at the size of open positions in futures trading. According to him, institutional investors and whales conducting spot sales worth billions carry significant short positions.
“It’s beneficial to track areas with intense open positions. If prices return to these zones, you might see some short positions begin to close. However, to reach these areas, you first need to capture the spot market.”