TOP-Analyst outlines the “worst case scenario” for BTC if the market bleeds

A prominent analyst, who rightly called Bitcoin’s peak at around $ 65,000 in May, now gives his worst-case scenario for BTC.

The person known in the industry as Dave the Wave told his 77,700 followers that the current price trend for Bitcoin looks similar to 2014, when the benchmark cryptocurrency fell from around $ 988 to $ 160.

“While some have compared the current price development of Bitcoin with 2013, the comparison with 2014 is also interesting. If you find the chart alarming, remember:

1]This is TA (technical analysis) only
2]You can use it as a keyword for risk management.

And that would be my * worst case *. “

The source: Dave the Wave / Twitter

Bitcoin is trading at $ 43,145 at press time and is down more than 16% in the past two weeks, according to CoinGecko. Dave the Wave’s chart shows that Bitcoin could fall to a short-term goal of $ 37,500 and a long-term goal of $ 20,000.

“Time of Crisis”.

The source: Dave the Wave / Twitter

The analyst also expressed doubts about the “golden cross,” a technical event that many analysts see as a sign of the continuation of the uptrend.

“Why is the golden cross important? Because after the 50-day MA had exceeded the 200-day MA, the price broke out and traded below it. “

The activity of the Bitcoin network is decreasing

With MicroStrategy and El Salvador increasing buying pressure on Bitcoin lately, the downside could be limited. However, online activity suggests that retail investor interest may wane.

The daily number of new addresses joining the BTC network has generated a series of lower highs over the past two weeks. At the peak of September 16, around 436,000 new Bitcoin addresses were created, less than the 463,000 new addresses created on September 2.

The source: IntoTheBlock

The continued contraction of the Bitcoin network can be seen as a pessimistic signal as it shows a decline in user adoption over time. Network growth is widely considered to be one of the most accurate price predictions. While exponential network growth would indicate an increase in the price of BTC, a network contraction could indicate an impending price decline.

Until the number of newly created daily addresses on the Bitcoin network increases, the outlook is likely to remain pessimistic.

You can see the coin prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Dailyhodl

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page