Bitcoin is likely overextended, could sink back to low-$7,000 says analyst

09 Jun, 2019
by Richard Allen
Price Analysis
Bitcoin is likely overextended, could sink back to low-$7,000 says analyst

While Bitcoin’s 2017 bull run brought the digital asset from the depths of obscurity into the public spotlight, the market wasn’t without its problems. The volatility saw Bitcoin soar dozens of percent some days while others saw it slip as a result of bad news.

However, one analyst, TraderX0, says it was precisely that kind of behavior that resulted in Bitcoin touching its 100-day exponential moving average (EMA) seven times. It was this continual support along a single trend that defined 2017’s price pattern. Interestingly, Bitcoin hasn’t come close to its 100-day EMA this time around.

As EthereumWorldNews reports, the last time Bitcoin touched this key level was in late March, before it even crossed the $5,000 mark. Essentially, because Bitcoin hasn’t crossed that level in almost two and a half months, historical performance shows that BTC may soon see further losses.

This is a sentiment shared by other analysts as well. As notable market analyst Willy Woo noted recently that Bitcoin will undergo more retracements and return to “normal levels.” Additionally, a trader going by the Twitter handle Dave the Wave noted that Bitcoin could see a retracement to $5,000 by the end of 2019.

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