The price of Bitcoin (BTC) has been relatively stagnant over the past few days. The digital currency has been finding it difficult to break over the $8,500 mark. It has been hovering around the $8k level and it has not made any major upward or downward move over the past couple of days. NewsBTC also recently reported that the price of Bitcoin (BTC) has been relatively trendless. BTC to USD price fell below $8,300 after making an attempt to break over the $8,500 mark.
Some crypto buffs are saying that the decreased volatility of Bitcoin is signaling that the market may soon break higher, considering the fact that market fundamentals, trends, and macro backdrop have started trending in favor of decentralized monies.
A digital currency analyst is warning of an imminent price plunge. A plunge that could send the price of Bitcoin (BTC) to the $6k range. The $6k range is a level that analysts say would determine if the digital currency market is really in a macro bull trend or not.
An analyst at Cane Island Alternative Advisors – Timothy Peterson – recently drew attention to a harrowing sign via a blog post. The analyst published the post on the page of the firm, noting that there is a relationship between the premium investors pay for OTC shares of Grayscale Bitcoin Trust and the price of the digital currency. Peterson made the following harrowing conclusion about the price action of Bitcoin (BTC):
“The relationship between Grayscale Bitcoin Trust (GBTC) premium and the price of Bitcoin (BTC) has not been stable and predictable over time. Nevertheless, our fundamental models also value Bitcoin (BTC) at about $6,000. It appears that institutional and long-term US investors in GBTC are expecting this price level for Bitcoin as well.”
The Recent Bitcoin Price Action Is Similar to What Happened at the End of 2018
Some evidence has surfaced to suggest that collapse is not inbound. The evidence includes a thesis held by many digital asset investors that the recent BTC price plunge from $10k to $7,700 was a microcosm of last year’s bear market. They said that this 20 percent decrease and the recent price action of BTC are similar to what happened at the end of last year and the beginning of this year. During this period, the price of Bitcoin (BTC) fell from $6k to $3k. What this fractal means is that the price of Bitcoin (BTC) would soon return to $10k.