He drew attention to BTC’s price action from mid-December to mid-January. During that time, the leading cryptocurrency traded within a $3,564 to $4,241 Fibonacci range.
While this isn’t anything notable in and of itself, the asset failed to break above its 0.786 Fibonacci ($4,096) prior to falling dramatically – all on somewhat declining trading activity.
“Awfully Similar”: Trader Wary Bitcoin Could Plummet
Although analysts have been surprisingly cheery over recent days, some have kept a level head. Amarok, a crypto-centric chartist, recently issued a warning to his investors via Twitter about the short-term prospects of Bitcoin.
While the current chart is far from identical with zero impurities, BTC recently failed to surge past its 0.786 Fibonacci ($4,072 – see the similarities?). Again, this all has been underscored by somewhat waning trading activity.
Amarok seems to be implying that BTC could soon trade near its 0.0 Fibonacci at $3,640, putting the cryptocurrency below the ever-important $3,900 level of support.
He isn’t the only one keeping his head on a swivel, especially as many are sure that Bitcoin establishing fresh lows is out of the realm of possibility. Crypto Krillin recently explained that there’s a high likelihood that the “moment of truth” for BTC is very near.
To back his idea that the stars are aligning, Krillin looks to a long-term declining trendline drawn from the top of 2017’s bubble, a long-term triangle that squeezed BTC throughout 2018, and a recent ascending pattern spotted by Galaxy. As so many lines are converging, Krillin remarks that there are two possible scenarios: BTC breaks through the Ichimoku Cloud it sits under to $5,500, or it falls to $3,000 as sell-side pressure disallows it from breaking the aforementioned lines.