A prominent crypto expert and analyst have predicted a crypto bearish run which will see the Bitcoin rest at $9,800.
To buttress his point about the crypto bearish run, the trader who is famous for trading in the day has pointed out to the head and shoulder formation that is coming up. In simpler terms, the head and shoulder is a very technical term that has always been described by three peaks.
The tips on the outside are always higher while the middle ones always come out on top as the highest. At the end of the day, a baseline supports the three peaks which are also known as the indicator of a bullish or bearish run. Previously, XBT/USD has formed a pattern that is similar to the 4-hour BitMEX chart.
Analyst say February trend is about to occur
In a move to back up his point, the analyst pointed out a recent event that occurred in the earlier parts of the year which saw it end in a negative trend. The crypto bearish run event that occurred in February saw the price target set at $8,720, showing that it could repeat in this present run.
The analyst has said that the present head and shoulder downside figure is set at $9,800. Even though fractals do not mean that repetition is bound to occur, it shows how traders behave based on previous happenings.
Recovering dollar a part of the reason for the crypto bearish run
When the XBT/USD crash happened in February, the market was facing a tough time as a result of the growing coronavirus pandemic. Even with the crash, investors were quick to notice the sharp reversal in prices of gold in the market while the dollar was being wanted by all and sundry.
This move was the main reason why Bitcoin saw its price decline. With the way things are going now, we can say that the fundamentals have taken a whole new side as Central banks across the world have pushed cash worth $70 trillion into the market. Two things have been instrumental to the crypto bearish run which is the dollar recovering and a shift to the decentralized finance sector.