On-chain analyst says Bitcoin is unlikely to drop below $7,000
|- Bitcoin has stalled in the $8000 to $9000 area over a few weeks, causing analysts to predict a significant price drop.
- Philip Swift, an on-chain analyst, believes that it’s unlikely for BTC to drop below $7,000 due to the current macroeconomic environment.
Over the past few weeks, Bitcoin has stalled in the $8,000 to $9,500. This has caused some analysts to expect the prices to drop very soon. One of the top traders went on to say that BTC’s price could drop about 40% in the coming months.
I’ve been seeing more and more comments saying BTC going down to support is unlikely because that’d be too big a drop. That’s not how BTC works. Retraces are short and vicious. Crashes even more so. 40% down is not unlikely, it’s happened before, it’ll happen again.
However, an on-chain analyst, Philip Swift, has said that with the ongoing macroeconomic environment, it is unlikely for Bitcoin to drop below $7,000. In every bear market over the past ten years, Bitcoin moved below its two-year moving average to mark the bottom of a bear trend. In 2015, the crypto dropped to the $200-400 range to confirm this pattern. And even this year, during March’s crash, BTC briefly traded under the pivotal technical level before recovering just recently.
According to Swift, there’s a low chance Bitcoin dips under the moving average (around $7000 currently) again during this cycle.
With mega money printing and growing unrest about (financial) freedoms around the world, dips below the 2yr MA (green line) are increasingly unlikely IMO,” he remarked, referencing how the recent 'boring' price action looks exactly as BTC did at the start of previous parabolic bull runs.
Investors and experts in the crypto space believe that Bitcoin is on the verge of a long-term uptrend. They cite macro factors like money printing as reasons why BTC’s price would move upward.
While BTC/USD may not drop below $7,000, it has definitely dipped below $9,300. As of press time, the asset is priced at $9,277. You can check out the latest BTC/USD price action report here.
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