Bitcoin [BTC] price moving below $3000 could spell “catastrophic scenario”, might remain there for years to come |
Nick Core, the President and Founder at Ecosystems LLC, recently appeared in an interview to speak about a possible recovery and capitulation levels for Bitcoin. His calls were based on the market cycle observed in the bear market between 2014 to 2015, which is said to have similar patterns to the current cycle.
Speaking to Ran NeuNer on CNBC’s Crypto Trader segment, Core stated that it was interesting to him, as we were observing a key retracement level. This is evidenced by going back to the previous bear market, which closed at just above the 0.7 Fibonacci level. Moreover, Core pointed out that the market is not far off from the level, having come off it only last night. He elaborated:
“We are looking to hold it. If we don’t hold it, were looking at real capitulation levels down at $3000. I am looking for a bottom here and there’s a number of reasons why.”
Core stated that the Fibonacci level was a great place to watch, as the last market closed at it. Moreover, he pointed at indicators such as the OPV, which is demonstrating a divergent trend, and the RSI, which has bottomed out on the weekly chart. On the general movement of market trends, he stated:
“It’s definitely a major shakeout. I still don’t think we’ve hit capitulation levels. $3000 is my capitulation level anything under this current price level, I think we’re going to stay there for a very long time. If we do end up hitting capitulation levels I’m looking at, I think we remain that for several months. Anything below that, any catastrophic scenario, we remain down there for years.”
He went on to say that commodities are dragged out when they hit such low levels, sometime even for decades. Core said that he expected the same for Bitcoin. However, he believed that this is not a reasonable conclusion, with the current level holding well. He elaborated:
“This four thousand range [is] being heavily defended the first time we passed through its we saw massive amounts of institutional volume especially around the $4700-$4800 area. I am looking for this area to be heavily defended.”
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