Bitcoin Analysts Claim We are still in Full Bear Market
Market participants hold different beliefs and opinions concerning the current performance of Bitcoin. However, Alex Kruger believes that those who think that the BTC market at the moment is bullish due to its ability to avoid a decline under $6,400 are wrong.
Kruger expressed himself regarding the imminent halving event that would reduce the mining reward of BTC. He is against the renowned price prediction models, like the Stock-to-Flow, that foresees BTC achieving its highest price of all-time following the halving.
“Contrary to what cheerleaders want people to believe, the halving is not supposed to make longs rich,” said Krüger. “I bet cheerleaders making predictions do not even know what econometrics means.”
He expressed himself after the price of BTC declined to its low level within the previous seven months on December 17. BTC was able to establish an intraday bottom of $6,430. However, the price declined by almost $300 sometimes later, showing that the buyers were ready to defend the support.
According to Krüger in his tweet, $6,400 is the “the first key level,” but BTC will lose the grip of the level because of a stronger bearish outlook.
$BTC 6400 was the first key level below and got strongly defended. This is a bear market though. Contrary to what cheerleaders want people to believe, the halving is not supposed to make longs rich. I bet cheerleaders making predictions do not even know what econometrics means. pic.twitter.com/cvQPqUn7el
— Alex Krüger (@krugermacro) December 18, 2019
Some other renowned analysts pointed to another direction. Scott Melker maintained that the price reversal from the $6,400 level paved the way for fresh bullish opportunities for investors.
(2) I drew this idea weeks ago (top didn't happen), my plan was always to go long if we got here and I really like the fashion in which we have arrived (potential divs, potential SFP). Volume has decreased on each push down, which can signal weakness for bears. pic.twitter.com/GS5AVBw2Vo
— The Wolf Of All Streets (@scottmelker) December 18, 2019
Later in other tweets later, Melker expressed his views, and it corroborated the views of Krüger. He said that the trend of BTC remains on the downside in the long-term.
Melker continued that a wide Descending Channel is being formed on weekly charts of BTC. He talked about the downtrend risks of BTC towards $6,200, noting that it is a likely accumulation zone for institutional traders.
Contrariwise, he maintained the likelihood of the Descending Channel becoming a Bull Flag. If such movement is successful, BTC could try to reverse its direction towards $14k in the long-term.
“This could all be WRONG, but it fulfills my criteria,” said Melker. “My maximum risk is 2% on this position. Risk managed.”
Featured image courtesy of Forbes. Source: CryptoPress.