$1,700 Bitcoin (BTC) Incoming?
Amid this extended bear season, dubbed a “crypto (nuclear) winter” by most, one analyst has quickly risen to prominence. The pundit in question in Murad Mahmudov, a Princeton graduate turned leading Bitcoin (BTC) researcher and supposed Goldman Sachs analyst, who now sports over 39,000 followers on Twitter.
The trader, who has recently become known for his in-depth analysis of Bitcoin’s downside potential, took to Twitter on Monday to discuss how he expects the flagship cryptocurrency to fare in the coming months. In a message released in tandem with a somewhat harrowing chart, Mahmudov, who made a jaw-dropping appearance on Anthony Pompliano’s “Off The Chain” podcast, wrote:
The only chart you need. My rough view on what I believe is going to happen… Patience is Virtue.
Staying cohesive with his recent bits of insight, Mahmudov subsequently drew trendlines that accentuated that lower lows are inbound for BTC, especially as the “froth” that Morgan Creek’s Pompliano once mentioned gets cleaned out of the cryptosphere.
He explained that when BTC pushed above $6,000, it was in “heaven.” Anything under that auspicious level was classified as either “purgatory” or “hell” for the cryptocurrency. Per Mahmudov’s investment thesis, Bitcoin is currently in a state of purgatory, stuck in the in-between, as a long-term downtrend slowly pressures the asset to stumble lower.
If BTC doesn’t break through the 15-week MA at $4,200, long-term downtrend at $5,500, and the 50-week MA at $6,800, not only will Wall Street be hesitant to foray into this budding space, but the asset will move slightly higher before entering the hell phase. Bitcoin hell, which may see BTC trade mostly flat between a long-term floor of $1,700 and $3,100, was depicted as a zone of accumulation for Mahmudov, who adamantly believes that the cryptosphere will swell exponentially in the decade to come.
Although many consumers would hate to see the cryptocurrency market leader plummet under $3,000, Mahmudov remarked that as the 2020 halving nears, BTC will begin to embark on a recovery, surmounting foreboding trendlines and key technical levels. Regardless, the chartist made it clear that the journey out of hell wouldn’t be pretty, especially as bears make victims of investors along the way.
The Case For A Further Crypto Crash
While Mahmudov fleshed out his price action expectations for this nascent market, the catalysts for a $1,700 Bitcoin weren’t mentioned. But have no fear, he touched on this topic through an array of Twitter threads released over the past month or two.
Per previous reports from Ethereum World News, using a set of historical and technical analysis, BTC could fall to as low as $1,700 to $2,200 by Spring 2019. More specifically, he used the study of fractals to outline two reoccurring patterns, Baby Capitulation & Final Capitulation, in Bitcoin’s long-term market cycles. In his eyes, the most recent iteration of the first pattern has played out, but the bout of Final Capitulation has yet to come. In terms of fundamentals, Mahmudov noted that many preeminent altcoins, including XRP, ETH, and EOS, remain overvalued, and thus need to move lower before BTC can head higher.
In another storm of comments, Mahmudov noted that the waning presence of Bitcoin-related comments on Twitter should also be a cause for concern. The trader explained that tweets regarding the cryptocurrency have reached 2014 levels, lower than any point in 2016, indicating that very few people care about decentralized, sovereign, uninflatable currency, along with the thesis that the 2017’s parabolic run-up had little effect on this community’s size.
Mahmudov’s enamorment with the $1,700 price level comes after The Crypto Dog, another leading trader, remarked that he would be surprised to see BTC fall to $1,800 or investors push Ethereum (ETH) to $50.
Title Image Courtesy of Descryptive.com Via Unsplash