Carter Worth claims that if one takes their time to review previous Bitcoin (BTC) price dips, they might see how possible it is for the cryptocurrency to have a 55% correction from all-time highs. This CNBC ‘Chartmaster’, who is also the chief market technician of Cornerstone Macro, appeared on the network’s Monday Fast Money segment and warned that BTC’s bottom is yet to be reached.
Analyzing the Coin’s Activities
Worth claims that Bitcoin price activities need to be reviewed for one to make a proper conclusion. He insists that comparing past BTC bottoms to the recent price activity reveals that the current price levels of $45,000 could indicate the top of a support zone.
He summarized that if the price was to go down by 55%, this would be in the lower support end and as it is, the BTC price is fighting at the support, which makes him believe that it will go lower.
Looking at current BTC highs, a 55% drop means that BTC/USD will hit $29,000. This 55% predicted dip marks an average of the major price dips seen since 2011 that ranged from 30% or more. Twitter users were quick to review his calculations and realized that he had included the 80% decline from the 2017 highs, an event that unfolded in over a year. If these are eliminated from the calculations, the average might just be 36%, which is the BTC/USD bottom experienced this week.
His avg drop includes each bear cycle drop. 97 75 82. Take those out is 36.
— chromage (@chromage2) May 18, 2021
Bitcoin Keeping Elon Musk at arm’s Length
Mainstream media mood especially on Bitcoin and altcoins is bordering on caution after the publicity Tesla CEO Elon Musk has been generating. In addition, Coinbase’s COIN has experienced some mixed fortunes which have kept the bearish sentiments on the rise. Analysts that have been looking at the industry’s gains over the last few months might consider these mixed fortunes from COIN a good thing as they might have a positive ripple effect on the crypto landscape.
Chart of Bitcoin momentum Posted by PlanB/Twitter, as of May 17, 2021
The creator of the stock-to-flow BTC price model, PlanB, sought to move on from the Elon Musk episode on Monday through their Tweet. Accompanying the chart above were his sentiments on how the momentum of BTC (200 Week Moving Average and Realized Value) was still up and onward based on the high transaction volumes despite the market experiencing volatility. The realized value is the price at which the Bitcoin market bought BTC and keeps up with its onward march regardless of the market experiencing volatility in recent weeks.
— PlanB (@100trillionUSD) May 17, 2021