The worlds dominant cryptocurrency appears to have lost all bullish steam. The momentum that the bitcoin price generated when it printed a 2019 high of $13,880 has vanished, giving way to a rapid downturn.<\/p>\n
This week, the cryptocurrency crashed through support at $7,400. This triggered a technical reversal on the daily chart. As much as I hate to say it, the bitcoin hater, Peter Schiff, finally got it right.<\/p>\n
A head-and-shoulders structure is one of the most reliable reversal patterns in technical analysis. Thus, from a technical perspective, bitcoin is now in a downtrend, and many expect that it would plummet to $6,000.<\/p>\n
For instance, Clem Chambers, CEO of ADFN and Online Blockchain Plc, predicts that capitulation will strike at $6,000. He told CCN:<\/p>\n
Bitcoin is entering a capitulation phase as you can more easily see when you remove the recent dump and bump from the chart.<\/p>\n
Nevertheless, Peter Brandt says that bitcoin bulls will likely face an even worse scenario, at least in the short-term. The analyst predicts a move below $6,000, which would usher in an extended bear winter.<\/p>\n
Even though bitcoins fundamentals have been making numerous advancements, Brandt says that a strong buy signal would only come once the Crypto Twitter bulls have all but disappeared. A thorough cleansing might be required to jumpstart a full-blown bull market.<\/p>\n
Once the nightmare is over, Brandt expects that bitcoin would be ready to soar to $50,000.<\/p>\n
If youre a bitcoin investor whos hoping for the halving to catalyze the next bull market, Ive got bad news for you.<\/p>\n
Brandt sees the purge lasting until July 2020, two months after the May 2020 halving. At that point, the analyst expects bitcoin to be trading around $5,000 which is not far from todays price.<\/p>\n
If youre accumulating bitcoin, can you see yourself holding the digital asset for another eight months while taking losses?<\/p>\n
For most bitcoin holders, this is a dreadful scenario. Many will likely cut their losses and move on. Brandt banks on the pain of waiting rather than the pain of losses to wear out bulls.<\/p>\n
Peter Brandts forecast agrees with PlanBs popular stock-to-flow model, which analyzes the bitcoin price according to available supply (stock) and new units entering circulation (flow).<\/p>\n
A look at bitcoins stock-to-flow chart suggests that the top cryptocurrency will likely trade below $10,000 until the latter part of 2020. Consequently, investors who are looking for quick gains would be flushed out.<\/p>\n
The good news is that this model also suggests those who HODL could be richly rewarded eventually.<\/p>\n
Both the stock-to-flow model and Brandt predict that bitcoin would soar to all-time highs after the prolonged purge. Brandt sees the possibility of bitcoin trading at $50,000, while PlanBs model could see a parabolic BTC surge as high as $100,000.<\/p>\n
But dont get too excited. Months of pain may lay ahead before you can even hope to enjoy significant gains.<\/p>\n
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.<\/p>\n
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Bitcoin Price Will Rip to $50,000 But Only After a Nauseating Purge - CCN Markets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The worlds dominant cryptocurrency appears to have lost all bullish steam. The momentum that the bitcoin price generated when it printed a 2019 high of $13,880 has vanished, giving way to a rapid downturn. This week, the cryptocurrency crashed through support at $7,400. Continue reading