Bitcoin and the aggregated crypto markets have been facing significant downwards pressure over the past couple of days that has led markets to retrace significantly from their recent highs that were set in late-June.
Now, one prominent analyst who predicted Bitcoin’s recent drop is now noting that the aggregated crypto markets could retrace another 61% in the near-future before they reach a price level that sparks the next major bull run.
Bitcoin and Crypto Markets Plunge as Bears Build Strength
At the time of writing, Bitcoin is trading down over 2% at its current price of $9,815, which is down significantly from its daily highs of $10,100 and down even more from its weekly highs of over $11,000.
This bearish price action is simply a continuation of the selling pressure that was first incurred in late-June when the entire crypto markets incurred a significant influx of selling pressure after it parabolically rose to $13,800, which proved to be a highly unsustainable price movement for the crypto.
The aggregated crypto markets have been closely tracking Bitcoin’s price action, which means that most major cryptocurrencies are currently trading down significantly from their monthly and weekly highs.
Satoshi Flipper, a popular cryptocurrency analyst on Twitter, recently noted that the cryptocurrency is currently trading within a wide descending channel that may continue to hold for the coming months.
“Some sideways action wouldn’t be the worst idea,” he concisely said while refencing the below chart.
Could the Markets Soon Face a 61% Retrace?
Importantly, while looking at the overall crypto market capitalization, it does appear that there is a strong possibility that the markets retrace significantly in the coming days and months, and one analyst believes this drop could go as far as 61% before the markets find support.
Dave the Wave, another popular crypto analyst on Twitter who called the recent Bitcoin price crash, spoke about this possibility in a recent tweet.
“Leaving the total market cap to look something like this…. 61% retracement of the move up… then off to the races,” he explained, referencing the retracement levels seen in the below chart.
Although this type of massive drop would certainly be devastating for the crypto markets, it may be just what is needed for the next parabolic surge to occur, and may ultimately prove to be a positive thing for the crypto markets and Bitcoin.