Bitcoin (BTC) analyst: The pain is not over, we are heading to $6k

June 8, 2018

Bitcoin took a long pause in this 2018, slowly declining with occasional burst of hope that a recovery is in sight only to dip some more.

The king of cryptocurrencies is trading in a very tight range, having not traded outside of the $7,300 to $7,800 in this week with a bottom-to-top range being just 5.3%.

Bitcoin is down 1.66%, since yesterday, with a market cap of $129 billion.

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While many bulls believe the recent lull is the bottom and a foundation for another move higher, one perennial bear, who predicted the move lower from $9,000, notes the worst is yet to come.

“This cryptocurrency had a very ugly May and it looks like things will only get worse,” said Jani Ziedins in a Friday blog post.

“This is a long-term downtrend and lower lows are still ahead of us. Breaking $7k support will trigger to another wave of selling, but the fear won’t strike in earnest until we undercut the $6k lows.”

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A drop to the $6,000 low would mean another 20% fall.

On the other side is a bull Tom Lee, who is still holding on to his $25,000 year-end target price. He said the regulatory outlook could be the impetus for digital currencies to move out of the bear market.

“In our view, the fact that Coinbase and Circle, two major crypto players, are moving closer to SEC regulatory reach, suggests implicitly, that the crypto regulatory outlook is on balance, improving,” said Lee in a June 7 research note.

“Think of it this way, why would two major players take deliberate steps that bring them deeper into the regulatory reach, unless they felt agencies were moving towards providing better clarity.”