- The cryptocurrency giant Bitcoin (BTC) could drop to a maxim of $10,000.
- BTC spiked like a rocket and rocks with a 4 years of halvening cycle
- BTC may drop down as low as $7,000 in the capitulation phase.
Clem Chamber, CEO of ADVFN which is a global financial investment information firm warned that “The cryptocurrency giant Bitcoin (BTC) could drop as high as $10,000. The situation will only get worse.”
Chamber explained in a YouTube interview with Stansberry Research recently, BTC spiked like a rocket and rocks with a 4 years of halvening cycle. However, he mentioned that the price of BTC went up like a rocket, it came down like a rock repeating the pattern. Moreover, this is due to the same audience and the same driver, the same pattern is produced.
More so, he also added that BTC may drop down as low as $7,000 in the capitulation phase. However, it won’t stay in this price range for a long time. In addition, he said the crypto winter has reached, but it is a chance to accumulate more bitcoins.
Added to this, he noted that Elon Musk’s remarks and China’s regulations were noisy and convinced the market moves for technical reasons.
Prior, the crypto enthusiast Scott Minerd who is the Chief investment officer of Guggenheim Partners, said CNBC in a recent interview with CNBC. Furthermore, he warned Bitcoin’s true bottom was $10,000. Even more, the market will only go back to a bull market after some years of consolidation, he adds. However, advising people who would like to invest in Bitcoin not to rush.
BTC’s Wyckoff Theory
According to CoinGecko, the BTC price is $35.6k with a 24-hour trading volume of $24,565,669,099, at the time of writing.
Wyckoff developed a price action market theory that is still widely used in trading today. According to the Wyckoff method, the price cycle of a traded instrument has four phases: accumulation, markup, distribution, and markdown.
Accumulation Phase: The accumulation process is explained on the chart by a ranging price structure. Bulls are receiving power slowly, and as a result, they are positioned to drive prices higher. Despite the fact that the Accumulation stage is associated with the bulls gaining control, the price action on the chart is flat.
Markup Phase: Bulls get enough traction to move the price above the upper limit of the range. This is a signal that the price has entered the second stage and that a bullish price pattern is developing on the chart.
Distribution Phase: This is the third stage of the theory. The bears are intending to retake control of the market during this phase. At this point, the price action on the chart is flat, as it was during the Accumulation process. A sustained failure of price to develop higher bottoms on the chart is one indication that the market is in the Distribution stage. Lower tops are created as a result of the price action, indicating that the market is currently in a selloff.
Markdown Phase: Following the Distribution phase, the Markdown process takes place as a downtrend begins. It implies that the bears have got enough financial power to move the market downward. The markdown is confirmed when the price breaks below the lower level of the horizontal distribution channel’s flat range on the chart.
Moreover, the BTC is currently in the accumulation Phase. This indicates that there will be more bearish days ahead.