The price of Bitcoin (BTC) could drop to $ 6,000 and remain bullish, a trader claimed on June 26, when the largest cryptocurrency tested $ 9,000 support.
In one Twitter analysisPopular trader SteveCrypt0 offered an alternative to the bearish sentiment that came from the markets this week.
Trader: $ 6K is a “healthy solution”
With a $ 9,200 BTC / USD pair, analysts are largely risk-free. The broad correlation with difficult equity markets has triggered several warnings that failure to keep support at the current level could mean a new recession.
For SteveCrypt0, however, even the worst case scenario wouldn’t necessarily mean the end of Bitcoin’s bullish scenario.
The BTC / USD pair could hit $ 6,300 or even less and maintain its general upward trend. The reason, he said, is because the Fibonacci retracement level is $ 6,340.
“We could go up to 6,300 or even drop to 6 km and stay optimistic,” he said.
“In fact, it would be a healthy correction straight into the gold pocket of the 0.618 Fib level.”
Chart of the BTC / USD pair with the Fibonacci retracement level. Source: SteveCrypt0 / Twitter
Bitcoin is following stocks downhill
Fibonacci lines are an area of great interest for Bitcoin traders looking for short-term support. A fall of 61.8% compared to previous peaks is nothing new for the BTC / USD pair: Bitcoin has recently shown an affinity for it.
This time, $ 6,340 is a retreat from the recent highs of around $ 10,200 that were observed in early June.
In April, Cointelegraph found that the same theory required a drop to $ 5,300, a month after the 2020 low of $ 3,600. Such a scenario has not developed.
In the meantime, the performance of Bitcoin is likely to continue to be determined by macro factors. On Thursday, seasoned dealer Tone Vays warned of the SP 500’s weakness and lack of tight support levels.