When the market data shows a series of conflicting signals, an analyst is now making a prediction that Bitcoin will soon witness the biggest crash in more than a year. While investors are looking at all the possibilities, a bold assumption like this is sure to be controversial.
Predictions are based on breakdown chart analysis
This catastrophic prediction came from famous trader The Moon, he tweeted:
“The #Bitcoin falling flag is more likely to have appeared on the 4-hour chart. The target will be about $ 2,400 if the bear flag support is broken. ”
Possible #Bitcoin bear flag on the 4-hour chart.
The target will be approximately $ 2,400 if the bear flag support breaks. pic.twitter.com/8W8qcsXR9q
- The Moon (@TheMoonCarl) March 26, 2020
His argument is based on a 4-hour price chart, which clearly shows a "bear flag" or "bearish flag," but that does not mean it is available on other time frames. However, it is worth noting that The Moon had accurately predicted the intense sale that took place on March 12.
Faced with high volatility over the past few weeks, Bitcoin analysts have come up with a series of forecasts. Therefore, it is difficult to know what data will indicate the right next move of the market. The most basic indicators are signaling price movements will continue in the short term, but a stronger recovery in the next few weeks is uncertain.
Bitcoin's fundamentals are still strong
Conclusions can be drawn based on single chart data, which is why we should consider other markets before predicting prices. There is currently no shortage of larger indices that analysts are using to emphasize Bitcoin's huge profit potential. These include halving - an event that is attracting great interest in using Bitcoin as a safe haven, and also significantly increasing overall blockchain activity.
It is worth noting that Bitcoin has been rising slowly since dropping sharply on March 12. Over the past few days, the currency has nearly reached the $ 7,000 mark twice. While the future volatility is clear, this factor alone is the reason that cryptocurrencies are far from being destroyed.
Several celebrities in the cryptocurrency space have expressed doubts about the power of global fiat types. Anthony Pompliano and CEO Binance Changpeng Zhao are two of these individuals. They assert that governments rushing to print large sums of money will cause inflation to come over the next few months. Many economists echo the same view. Such moves are a good sign for Bitcoin and other cryptocurrencies.
In this regard, Zhao recently tweeted:
“According to this website, the total M2 supply for the USD is 15 trillion USD as of February 2020. That was more than 7 trillion dollars in 2008. How much poorer do you consider yourself to be because of this? And in the past few days, has Bitcoin fixed this error? ”
According to this website, total M2 money supply for USD is $ 15.x trillion as of Feb 2020. It was $ 7.x trillion in 2008.
Can you work out how much poorer you become over that peroid just because of that?
- CZ Binance 🔶🔶🔶 (@cz_binance) March 23, 2020
Therefore, even if Bitcoin is experiencing another major price drop, all signs are showing long-term growth and stability. This reality is based on the remarkable nature of blockchain and the increasing global adoption of this emerging technology.
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According to Bitcoinist
Translated by ToiYeuBitcoin