Bitcoin remains rangebound at $70,900 on Monday, as it is on the brink of heading south as the US-Iran ceasefire talks are falling apart. Trump announced to block the Strait of Hormuz, not allowing even Iranian ships to enter or exit the route. The move will intensify the conflict and could lead to strains in the ceasefire talks. The markets again enter the slippery slope mudhill that can pull prices downward.
The effects are already seen as the Asian stock market opened Monday’s trading bell in the red. India’s Sensex is down more than 700 points, while Japan’s Nikkei slipped 400 points. Hong Kong’s Hang Seng fell 300 points, and the market has once again entered bearish territory. The axe will soon hit the cryptocurrency market, and the first in line is none other than Bitcoin.
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Bitcoin To $38,000: Predicts Trading Expert
Leading market analyst TradingShot shared on TradingView, highlighting a chart that Bitcoin will bottom out at $38,000. That’s slashing around 45% of its current value and will be a deep cut in investors’ portfolios. “BTC has been within a 6-month Bear Cycle and most likely has another 6 months left. The Fibonacci Channel since 2018 shows that each Bear Cycle extended between at least five Fib levels: 2018 between 0.786 – 0.0 and 2022 between 1.0 – 0.382. The 2022 one was -7% less than 2018, so if this holds, we are looking at the current Bear Cycle to bottom after completing a -70% total decline,” wrote the analyst.
The trading expert forecasts that Bitcoin is on its way down to the $47,000 and $38,000 range. Taking an entry position at this level will be greatly beneficial to investors for the long term. “As a result, we expect Bitcoin’s next Low to be around $47,000 (1W MA350) with a final bottom around $38,000 (1W MA500) being possible, but depends on circumstances that we will monitor weekly and update here when needed,” the analyst summed it up.