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Crypto Analyst Says Bitcoin May Drop to $7,000 Before Meteoric Rise to New All-Time Highs

August 19, 2019

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Crypto analyst and economist Alex Krüger is mapping out the current state of Bitcoin.

In a new series of tweets, Krüger says Bitcoin remains in a long-term bull trend. He highlights $9,000 as a crucial area of support, and says if it breaches that level, the leading crypto is likely to move lower in a hurry.

“A break of $9000 would likely see price drop FAST to $8500. Were price to be overextended by then, I’d expect price to bounce there. Were price to consolidate in the $9500-$9000 range before breaking down, I’d expect $8500 to get run over and price to push into the $7Ks.”

Krüger refutes the notion that Bitcoin will inevitably fill its futures gap, which would require a plunge to around $8,500.

“Many are talking about going long around $8,500 in the event of a breakdown. $8,500 is a big level, as it represents the 50% retracement of the 2019 move, as well as filling the Jun/14 weekend CME gap. This gap-fill level is not precise due to the futures basis.

Even though gaps often fill, gaps are not meant to be filled. Gap filling is a combination of random variations (price moves), self-fulfilled prophecy (traders assign value to gaps), and lack of support/resistance within gaps (i.e. no trades inside).

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One can find plenty of gaps unfilled throughout history in trending assets. In a bull market, down gaps tend to fill. In a bear market, up gaps tend to fill. Furthermore, CME gaps can be seen as not ‘real’, as there’s plenty volume inside gaps in 24/7 platforms.”

He also lays out the positive and negative factors facing BTC in the summer of 2019.

“Negative factors: Miner profitability is HIGH. Pro miners running S9s have all-in costs (after depr.) in the $5500-$6500 range. Many ‘hodl’ whatever is not needed to cover costs. Newer miners coming online increase difficulty and put pressure on margins, reducing hodling. 

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Positive factors: Bakkt coming online September 23rd. Fidelity, Ameritrade, ETrade (awaiting news). HNWI & Macro traders interest is up. Macro narratives are up (false, but who cares). Retail interest trending up (though still low). Chinese interest in particular tripled in 2019 [according to Baidu searches).”

As for where BTC will head in the long run Krüger is bullish and says he believes BTC will break through $20,000 in 2020 or 2021, triggering a sharp rise to as high as $50,000.

17/ Bigger picture, the upside is IMO considerably larger than the downside. Think $BTC will eventually break through $20K, in 2020 or 2021, and once it does, it should trade $30K, $40K and $50K fast. Must be long for when that happens, and enjoy the ride as others FOMO in. pic.twitter.com/A2Kv8jQmqU

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.