Bitcoin, the number one cryptocurrency by market cap, could still lose the last remnants it still has of last year’s bull run, and go under the $1,000 mark, according to one analyst who successfully called its drop below the $6,000 mark last year.
Speaking to MarketWatch Jesse Colombo, an analyst at RIA Advisors, noted that a looming chart pattern could spell danger, as BTC was forming a triangle pattern that would “likely make another big move” once it was broken.
Notably, the pattern was seemingly broken this week, after bitcoin went through a sudden drop that saw its price go from about $4,050 to roughly $3,850, and about $8 billion leave the cryptocurrency ecosystem. Later on the sell-off continued, as BTC then hit the $3,650 mark.
At press time, CryptoCompare data shows the flagship cryptocurrency is trading at $3,670 after trading sideways since the sell-off. In the last 30 days, it’s still up by 6%. Its recovery from a $3,200 low has been seeing some claim it bottomed out.
Per Colombo, however, the worst may be yet to come, as the analyst believes bitcoin can dip to under $1,000, completely wiping out its 2017 gains. That year, BTC went from little under $1,000 to a near $20,000 all-time high.
Last year, it started dropping and while some believed the $6,000 was the end of the downtrend, Colombo called the sell-off wasn’t over. Breaking this pattern, he noted, could see bitcoin dip another “couple of thousand.” He said:
Bitcoin is still in a confirmed downtrend and a breakdown from this pattern would likely foreshadow the cryptocurrency hitting the low thousands or even under $1,000, eventually.
As MarketWatch pointed out BTC’s sell-off has been so intense even some of its critics have claimed the cryptocurrency could soon rise. Jeffrey Gundlach, the CEO of DoubleLine Capital, recently stated it could go up to $5,000 for an “easy 25%,” in a trade that wasn’t for the “faint of heart.”
As CryptoGlobe covered, however, not all analysts agree. Mati Greenspan, a senior market analyst at eToro, revealed the recent drop “seems like normal crypto volatility to him,” and on Twitter noted that bitcoin has a support at around $3,550, and at $3,000.