The exact pattern in this history shows Bitcoin price could collapse to $ 3,000

What makes experts predict Bitcoin price back this way?

The short-term trend of the price of Bitcoin (BTC) since falling to $ 3,700 suggests a Elliott Wave pattern formed on low time frames. Although this pattern can reverse into an uptrend, the declining BTC volume suggests it is unlikely.

Bitcoin's price has mostly ranged from $ 5,800 to $ 6,900 in the past few days, except for a short wick to $ 7,300 on April 3.

4-hour chart of BTC-USDT. Source: TradingView
4-hour chart of BTC-USDT. Source: TradingView

Technical analysts said the declining Bitcoin volume accompanied by stagnation in open contracts in the futures market and the V-shaped recovery of the cryptocurrency market have increased the likelihood of price declines for Bitcoin in the near future.

Elliott waves, larger triangles, and reduced volume increase Bitcoin's chance of reaching new bottoms

An anonymous trader - who predicted Bitcoin's $ 3,000 bottom in December 2018, said that BTC's current price action could be analyzed in the form of Elliott waves, a larger triangle or a "large ground." than".

All three indices propose a short-term correction pattern, with lackluster volumes in both futures and spot markets.

The recent price trend of Bitcoin is similar to the Wyckoff Events and Phases model - a model that when formed can lead to a retest of the $ 4,000 low area.

Trader said:

“There are many different ways you can check BTC here, or wxy, bigger triangle, bigger ground, I'm not too sure, but one thing that stands out is the 3-wavelength series and the lack of 5 dynamics. muscle wave. For this reason, I think it's still too early to see the bottom. ”

The Elliott Wave model often divides traders by its practicality in assessing the price trend of cryptocurrencies, as it can be used to support both bullish and bearish scenarios.

Elliot Bullish and Bearish wave patterns. Source:
Elliot Bullish and Bearish wave patterns. Source:

Therefore, when technical analysts discover the Elliott Wave pattern formed on Bitcoin or other cryptocurrencies, they often evaluate other important technical data, such as daily spot volume. .

Spot volume is an important indicator of the actual needs of retail traders in the cryptocurrency market for Bitcoin. Unlike high leverage volume on futures exchanges, spot volume on major exchanges such as Coinbase, Binance, Kraken and Bitstamp provide an insight into the retail market.

Why the stagnation in BTC's spot volume is important data to consider

The price of Bitcoin has doubled since falling to a low of $ 3,600 on futures exchanges and $ 4,000 on spot exchanges on March 12, when the coin just peaked at $ 7,300 earlier this week.

For an asset with a 100% price increase, Bitcoin's spot volume remains relatively stagnant, unable to rise back to mid-March levels.

Data from Skew shows that Bitcoin's spot volume increased to $ 1 billion on March 12, but then fell below $ 250 million.

Bitcoin spot volume. Source: Skew
Bitcoin spot volume. Source: Skew

The low buying demand from retail investors and the increasing cash flow into the stablecoins indicate that investors are ready for another big price drop before they rejoin the market.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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