The price of Bitcoin (BTC) could collapse to USD 6,000 and remain bullish, a trader said on June 26, as the largest cryptomone currency tested the USD 9,000 support.
In a Twitter analysis, the popular trader known as SteveCrypt0 offered an alternative to the bearish sentiment coming from the markets this week.
Trader: USD 6K is a „healthy correction
With the BTC/USD trading at USD 9,200, analysts are largely risk-free. The wide correlation with distressed stock markets has led to multiple warnings that a failure to maintain support at current levels could mean a new recession.
15% correction brings Bitcoin price down to USD 8,100 days before BTC’s halving
However, for SteveCrypt0, even the worst-case scenario would not necessarily mean the end of Bitcoin’s bullish scenario.
The BTC/USD could go as high as USD 6,300 or even lower, he argued, and still maintain its overall upward trend. The reason, he said, lies in the fact that the Fibonacci retracement level is at USD 6,340.
„We could go as low as 6,300 or even drop to 6k and still be optimistic,“ he said.
„In fact, it would even be a healthy correction directly in the golden pocket of the 0.618 Fib level.
Bitcoin follows the actions downhill
Fibonacci lines represent an area of great interest to Bitcoin traders looking for short-term support. A 61.8% decline from previous peaks is nothing new for the BTC/USD pair: Bitcoin has shown an affinity for doing just that in recent times.
Why do traders expect the key Fibonacci level to bring the Bitcoin price down to USD 5,300?
This time, USD 6,340 is the decline from the recent peaks of around USD 10,200 seen in early June.
In April, Cointelegraph noted that the same theory called for a drop to USD 5,300, a month after the 2020 low of USD 3,600.
In the meantime, Bitcoin Evolution performance is likely to continue to be dictated by macro factors. On Thursday, veteran trader Tone Vays sounded the alarm about weakness in the S&P 500, along with the lack of nearby support levels.