Crypto Analyst John Kolovos: Bitcoin Price Will Drop To $8,500

Crypto analyst John Kolovos recently told the Bloomberg that he expects bitcoin to drop further to the $8,500 price level before rebounding and as we can read in the latest cryptocurrency news, he believes that bitcoin futures are a great buy at $8,500.

The Macro Risk Advisors chief technical and crypto analyst John Kolovos spoke with Bloomberg about the bitcoin price and the action of the coin. He also talked a little about the recent Congressional and Senate hearings over Facebook’s crypto project Libra. According to him, the price of the number one cryptocurrency is going through a corrective process and he stated that he does not believe bitcoin is going through a new trend in a changing correction motion.

Kolovos explained that the Bitcoin price is currently going through the motions of an ABCD correction and it is trying to find support around $9,000. Kolovos suggested that Bitcoin is close on the verge of stabilization but he warned that before this happens the digital asset will be in for some more downside followed by a messy consolidation. The bitcoin price is now finding support at the 50-day moving average but there is a presence of an M top formation which could continue to attract bears. Additionally, the RSI could drop further before a healthy bounce since, during the bull run in 2017, the RSI of 40 proved to be a reliable bounce point for buyers.

Kolovos outlined that currently there is a lot of price congestion in the current range and that the current prevailing trend on the long-term chart was very strong and a counter-trend is not really advisable. Also, there are some buyers at the lower levels between $9,000 and $8,000. He also noted that the bulls are in charge currently since Bitcoin is above the 50-week moving average and that a sign like this was a clear indicator in April that there will be a resumption of the long-term uptrend. He noted for the Bloomberg altcoin news:

‘’Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500.’’