Tanya Abrosimova
Independent Analyst
- Bitcoin is grinding higher, but the upside is limited.
- GP Bullhound predicts a major crash for the digital assets market.
Bitcoin is oscillating in a narrowing range with slightly bullish bias. The coin has found a strong support at $9,000 as this psychological level is strengthened by 50% Fibo retracement level of the recent decline from $11.500 to $6,480. BTC/USD is trading at $9,220 at the time of writing.
While crypto experts, like Peter Tiel or Winklevoss brothers, continue to publish positive Bitcoin forecasts no matter what, investment bankers stick to pessimistic views. Investment bank GP Bullhound analysts predict a major crash that will shake the whole industry and wipe out 90% of the total market value and drastically reduce the population of tokens.
“While this correction will be critical to cutting through the hype, its lack of impact on financial institutions will create new phenomena that we have never seen in any previous bubble burst. Nonetheless, once this ‘crypto winter’ passes, the growth dynamics for the precious few survivors will be unprecedented,” Sebastian Markowsky, the lead author of GP Bullhound's report, writes.
Bitcoin technical picture
The threshold at $9,000 is a critical short-term support level for BTC/USD. On the intraday level, the local resistance comes at $9,250, It is created by the sloping trendline that comes from April 25 high. Once it is clearly broken, the coin may extend the upside towards $9,500 and $9,700. On the downside, break below $9,000 will trigger extended sell-off with initial aim at $8,700 followed by $8,000.
BTC/USD, the hourly chart
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