Once Bitcoin (BTC) started to incur strong losses in the second half of 2019, analysts were once again making extremely low price predictions.
Per previous reports from NewsBTC, long-time Bitcoin skeptic and CEO of Euro Pacific Capital Peter Schiff said in a tweet that the price of the leading cryptocurrency could “dump” to $1,000 to complete a chart pattern.
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And even recently, despite the price of digital assets rallying by dozens of percent since the December bottom, a number of traders have asserted that a $3,000 Bitcoin price is in the books.
But, according to a prominent crypto analyst who called BTC’s decline to the $6,000s, the idea that BTC is extremely bearish right now is somewhat irrational.
4 Reasons Why Bitcoin Price Unlikely to Crash Right Now
Legendary analyst Dave the Wave recently laid out four reasons why he is “surprised at the bearish sentiment” he is seeing on Crypto Twitter:
- In the past 12 months, since the end of January of 2019, the price of the leading cryptocurrency has surged by 160% — this is a performance that effectively outpaces all other crypto assets, stocks, and commodities.
- BTC has seen a “solid retracement as long as the parabolic spike up, which has held the 0.5 Fibonacci Retracement of the entire move, suggesting bulls remain in control.
- Bitcoin has just broken “out of a long downward trend line.”
- Prices have recently posted a higher high.
Bit surprised at the amount of bearish sentiment I’m seeing on CT [not really as a contrarian]. A recap of this year –
– price up 160%
– solid retracement as long as the parabolic spike up
– break out of the long downward trend line
– higher high
– looking for higher low pic.twitter.com/Gev1iaAi6N— dave the wave (@davthewave) January 26, 2020
Long-Term Bottom Signals Continue to Flash
Dave isn’t the only analyst expecting for Bitcoin to start to form an uptrend once again.
Willy Woo — partner at Bitcoin fund Adaptive Capital — said in December that per his analysis of on-chain data, he believes the macro price bottom was established in the low-$6,000s. Woo did say, however, that there is an opportunity for a drop below that bottom, but noted that it would just be a blip in the grand scheme of things.
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Also, analyst Cryptokea recently noted that the worldwide Google Trends, well, trends for the search term “Buy Bitcoin” have recently hit a seven-month high — the highest since June 2019 — at “10.”
1/ Googling for “Buy Bitcoin” just reached a 7 months high (Score 9). The long-term upwards trend is undeniable. The last time the score reached a 10 was:
Nov ’13 (bull top),
May ’17 (price on parabolic run-up),
Jun ’19 (medium-term top)
>Feb ’20 (price on parabolic run-up?) pic.twitter.com/tkdXIEvM3Q— CryptoKea (@CryptoKea) January 20, 2020
The latest Google Trends “10,” Kea said, likely marks the start of a parabolic run-up that will bring prices much higher than the $14,000 high.
He added that the “long-term upwards trend” for this metric, which is correlated with growth in the price of Bitcoin, is “undeniable,” pointing to a logarithmic corridor confirming that over time, more and more people want to buy the cryptocurrency.
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