Crypto News

Bitcoin Dropping to $6K ‘Golden Pocket’ Isn’t Bearish, Says Trader

A classic Fibonacci retracement could land BTC/USD at $6,300 or lower and still not disturb the long-term trend.

Bitcoin (BTC) could crash to $6,000 and still remain bullish, one trader claimed on June 26 as the largest cryptocurrency tested $9,000 support.

In a Twitter analysis, the popular trader known as SteveCrypt0 offered an alternative to the bearish sentiment coming from markets this week.

Trader: $6K is “healthy correction”

With BTC/USD circling $9,200, analysts are broadly risk-off. Broad correlation with ailing stock markets has sparked multiple warnings that a failure to keep support at current levels could spell a fresh downturn.

For SteveCrypt0, however, even a worst-case scenario would not necessarily spell the end of the Bitcoin bull case.

BTC/USD could hit $6,300 or even lower, he argued, and still retain its overall uptrend. The reason, he said, lies in the fact that a Fibonacci retracement level lies at $6,340.

“We could go as low as 6300 or even dip to 6k and still be bullish,” he commented. 

“In fact, it would even be a healthy correction right into the golden pocket of the 0.618 Fib level.”

BTC/USD chart showing Fibonacci retracement level

BTC/USD chart showing Fibonacci retracement level. Source: SteveCrypt0/ Twitter

Bitcoin follows stocks downhill

Fibonacci lines represent a keen area of interest for Bitcoin traders eyeing short-term support. A 61.8% retracement versus previous highs is nothing new for BTC/USD — Bitcoin has shown an affinity for doing just that in recent times.

This time, $6,340 is the retracement relative to the recent highs of around $10,200 seen in early June.

In April, Cointelegraph noted that the same theory called for a pullback to $5,300, a month after 2020 lows of $3,600. Such a scenario did not play out.

Bitcoin’s performance meanwhile is likely to remain dictated by macro factors. On Thursday, veteran trader Tone Vays sounded the alarm about weakness in the S&P 500, together with a lack of nearby support levels.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

1 Comment
Newest Most Voted
Inline Feedbacks
View all comments
Popular Trader Claims Bitcoin Dropping To $6,000...
6 months ago

[…] Read the full story here. […]

Related Crypto News

Top 5 cryptocurrencies to watch this week: BTC, LINK, UNI, XTZ, ATOM
Bitcoin’s brief period of consolidation has opened a path for select altcoins to rally higher. Bitcoin (BTC) price has...
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress
Bitcoin prices and a number of other digital assets have grown significantly in value during the last decade. Some...
Guggenheim CIO: ‘Speculative frenzy’ to die down, but $400k target still on
While some traders have gotten mixed signals, Guggenheim’s Scott Minerd is taking the long view. In an interview with...
Pre-Register Now on Aladdin Exchange to Receive 100 TNC Coins
PRESS RELEASE. UAE-based crypto exchange Aladdin opens its platform for pre-registered users. This digital asset exchange is the newest...
Secure Bitcoin self-custody: Balancing safety and ease of use
With Bitcoin’s price clocking $40,000 recently, safe and secure measures for storing the valuable digital asset are once again...
Paypal to Earn $2 Billion in Revenue From Its Bitcoin Business, Says Analyst
Mizuho Securities analyst Don Dolev has forecast that Paypal will earn up to $2 billion in revenue from its...

Featured Crypto News

Canada’s first public Bitcoin fund hits $1 billion
3iQ’s Bitcoin QBTC fund has surged 900% in market cap since October 2020, breaking a $1 billion milestone. Canadian...
US Fed: CBDC a ‘very high priority’ to combat bad private sector money
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin...
Coinbase Issues a Public Apology to EU and UK Customers — Did Not Address Its Global Issues
Cryptocurrency exchange Coinbase published a statement addressing their U.K. and E.U. customers, apologizing for system outages and account restrictions....
Anchorage Obtains Federal License to Operate as Crypto Bank From the OCC
The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to...
Respect the Pomp: RSK’s token spikes 30% after founder appears on podcast
RIF got a nice price boost hours after its founder appeared on Pomp’s podcast. RIF, the utility token for...
Bitcoin Reclaims $40,000 Just days after Falling to $30,000
After a sharp correction that lowered its price to nearly $30,000, Bitcoin is close to reclaiming $40,000. The leading...