As reported by NewsBTC yesterday, the Bitcoin (BTC) price has been relatively trendless as of late, falling under $8,300 after attempting to consolidate above $8,500. Some say that this non-volatility is an indicator that this market may soon break higher, looking to the fact that market trends, fundamentals, and the macro backdrop (semi-quantitative easing) have started to trend in favor of decentralized monies.
However, one analyst is warning of impending collapse. A collapse that could bring BTC all the way back to $6,000 — a level which analysts say will determine if the cryptocurrency market is actually in a macro bull trend or not.
Related Reading: Analysts Expect Altcoins to Outperform as Bitcoin Price Stagnates
Grayscale Bitcoin Trust Hints at 25% Collapse
Timothy Peterson, an analyst at Cane Island Alternative Advisors, recently drew attention to a harrowing sign in a blog post. Published to his company’s page, the analyst noted that there is a “relationship between the premium investors pay for OTC shares of Grayscale Bitcoin Trust (GBTC) and the cryptocurrency’s Price.”
#Bitcoin could drop to $6,000 according to $GBTC’s premium.https://t.co/voRfhL8mm9
— Timothy Peterson (@nsquaredcrypto) October 11, 2019
With this in mind, Peterson made the following harrowing conclusion about Bitcoin’s price action:
“The relationship between GBTC premium and bitcoin price has not been stable and predicable over time. However, our fundamental models also value 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.”
There has been some evidence to suggest that collapse is not inbound, though. Namely, the thesis held by many investors that the recent collapse in the Bitcoin price from $10,000 to $7,700 was a microcosm of 2018’s bear market. More specifically, they say that this 20% collapse and the subsequent consolidatory price action is similar to what took place at the end of 2018 and at the start of 2019, during which Bitcoin fell from $6,000 to $3,000 in a short period of time.
$BTC: In addition to the fact that bitcoin moves in cycles, many movements on the chart are repeated on completely different time frames, because these are ordinary patterns. I have gained confidence in the similarity of these two situations, so at the moment I’m bullish. pic.twitter.com/zRp71XcazJ
— Nik Jaremczuk (@truenomic) October 12, 2019
This so-called fractal implies that Bitcoin will soon return to $10,000.
Related Reading: Bitcoin Price May Have Begun 50% Surge to $12,000: Analyst
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