Bitcoin Might Soon Drop to $6,000, Says Fundstrat’s Technician

Bitcoin Might Soon Drop to $6,000, Says Fundstrat’s Technician

Bitcoin might soon see another considerable connection. According to a Fundstrat’s technician bitcoin is ‘living on the edge.’ If it sustains its $7,500+ perspective, it will be good news for its investors and traders. Otherwise, they should get ready for a significant plunge.

Bitcoiners Need to Brace For a Drop, Even More Devastating Than Before

After $6,500 struggles in mid-July, bitcoin held on a $7,300-$8,000 rate. However, since the beginning of August, it has steadily dropped to a $7,500 from the high of $8,000.

The chief of technical strategy at Fundstrat Robert Sluymer, nevertheless, said $7,500 is what bitcoin needs and not less. In the interview on CNBC on August 2, he explained:

"I think that bitcoin's at a very critical stage because if that uptrend's going to continue, it needs to dig in right here."

He also added that the relative strength index (RSI) of the ‘Big Daddy’ demonstrates it is “very oversold” at the moment. This may mean it is time for purchasing BTC, yet investors had better be careful.

Should The World Forget About $7,000-Rate?

In general, Sluymer refers precisely to the intra-day chart of BTC when talking about its ups and downs. The latter indicates the coin recovered to the key support level, which it has previously seen this summer.

The technician believes that if bitcoin sustains its current price, crypto-enthusiasts may hope for long trade perspectives.

However, he added that if bitcoin’s price does not get fixed on the $7,500 margin, the world may see its huge correction – down to $6,000 per unit.

“But it has to be done with very tight stops because if bitcoin cannot dig in here, then that short-term trend defined by the 15-day moving average begins to roll over and I think it's vulnerable to a collapse into that $6,000 range," explained Sluymer.