Jeff DeGraaf, head of technical research of Renaissance Macro Research says that Bitcoin may not rise again to its high value if it breaks down below its present support zone. His opinion is trailed the digital currency over the bearish trend it took in this past week that sees it go 14% low.
The bullish trend it took in July had led to many speculation and predictions of the cryptocurrency to rise to $20,000 before the year runs out. However, the volatility of cryptocurrency still trails it.
Jeff Degraaf’s Prediction of Possible Bitcoin Bearish Trend
The head of technical research of Renaissance Macro Research believes from his technical analysis standpoint of the Bitcoin trend that the cryptocurrency may never rise to its highest point again if it breaks below its supports zone. This opinion was stated in respect to the bearish trend the cryptocurrency took last week that saw it go down 14%.
Speculation and predictions of the cryptocurrency to rise above $20, 000 has been rife since last month when there was a sudden Bullish trend that saw it grow from $6000 to $8000 within a week. Afterward, the cryptocurrency has continued to take the bearish trend.
The bearish trend of this past week has led to the opinion of Jeff Degraaf, a respected technical analyst. According to the institutional magazine, he is rated as the number 1 technical analyst in the past ten years, which makes his prediction more considerable.
While revealing his opinion, he stated that,
“Parabolic moves are notoriously dangerous for short‐sellers … Usually, a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare].”
He later states that “Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game‐over.’ We are of course referencing Bitcoin as exhibit ‘A’ in today’s market.” By this, he said he would advise betting against bitcoin to rise again if it breaks down below the present support level.
Most cryptocurrency enthusiasts are still unmoved by their optimism of Bitcoin rising high in the latter stage of this year despite the bearish trend that it has experienced so far. Maybe the predictions of Renaissance Macro Research will make them faze out of their views who knows?
But the optimism of the cryptocurrency rising this year still rife, as more institutional acceptance is expected through the approval of Bitcoin ETF by SEC, which the delay is seen as the reason for the bearish move. Regardless of this, time will tell of the fortune of Bitcoin.