- Crypto analyst Lark Davis believes Bitcoin price could get worse.
- Davis looked at technical indicators to support his prediction.
- However, the analyst doesn’t believe Bitcoin price will fall below $28,000.
“Bitcoin man, game freaking over! Bitcoin is looking bad, and it could get worse. But how much worse could it get? That’s what we’ll investigate in this video looking at some technicals.”
Imminent death cross
Davis proceeded to look at Bitcoin’s price charts. Based on the current price trajectory, Davis believes Bitcoin is likely to form a death cross. A death cross is a lagging market indicator, and a bearish sign that Davis thinks is likely to form in about 10 days.
Davis added that to avoid or reverse the death cross BTC price needs to go up by $10000 which is unlikely. The likelihood of BTC going up to $42,000 is unlikely due to several factors.
First, Bitcoin’s fear and greed indicator is down to 13 showing that investors are freaking out. Also, most investors tend to buy into greed and sell into fear. This means that while many were happy to buy when Bitcoin was over the $60,000 mark. However, every few are will to do the same at half the price.
Secondly, BTC price has continued to dump despite bullish news. For instance, MicroStrategy’s plan to buy $400 million worth of Bitcoin did not impact the crypto at all. Apart from MicroStrategy, several Latin American politicians have recently been bullish on Bitcoin. This has been both on a national level like with El Salvador, or personally like Brazil.
Wyckoff Price Cycle
Lark Davis looked at another indicator called the Wyckoff Price Cycle. According to Davis, the current price slump is in line with the technical indicator’s distribution phase. Similarly, current market movements are in line with the indicator’s accumulation phase.
— Lark Davis (@TheCryptoLark) June 7, 2021
Davis even compared Bitcoin’s price to the indicator’s choppy phases. However, if the analysis is true, BTC price could continue to trade sideways over the next few weeks. Also, Davis speculated that the Wyckoff pattern is driven by institutional and other big investors. Allegedly, whales tend to buy low and sell high, repeating the pattern to rack in profits.
— Lark Davis (@TheCryptoLark) June 8, 2021
Finally, Davis predicts that If the death cross and Wyckoff indicators hold true, BTC could take a dramatic dip to about 27/28,000. However, the dip will serve as a spring, pushing the price back up, according to Davis.