As Bitcoin has stalled at $ 8,000 and $ 9,000 in the past few weeks, some analysts are beginning to expect a strong downward move.A top trader even believes that BTC could see a 40% decline in the coming months. He attributes this sentiment to the fact that the cryptocurrency has seen such declines in previous bull markets:
“I see more and more comments saying that BTC is unlikely to go down in support because that would be too much a decline. This is not how BTC works. The retreats are short and malicious. Crashes even more. A 40% drop is not unlikely, it has happened before, it will happen again. ”
Bitcoin under $ 7,000? Unlikely – on-chain analyst
In every bear market of the past decade, Bitcoin has moved below its two-year moving average to mark the bottom of a bear trend.In 2015, BTC fell in the $ 200-400 range to confirm this pattern. And even this year, during the March crash, the cryptocurrency was trading just below the key technical level before recovering a few weeks ago.According to on-chain analyst Philip Swift, who popularized this form of cycle analysis, Bitcoin is unlikely to fall below the moving average again during this cycle.”With mega-money printing and growing unrest over (financial) freedoms around the world, setbacks under the 2-year MA (green line) IMO are increasingly unlikely,” he comments, pointing out that the recent “boring” price action looks the same like BTC at the beginning of the earlier parabolic bull runs.