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According to Carter Worth, a quick glance back at previous BTC price dips indicates that a 55 percent correction from all-time highs is possible.
According to CNBC’s “Chartmaster.” Bitcoin (BTC) could drop to $29,000 whilst still checking existing funding.
In an appearance on the network’s “Fast Money” segment on May 17, Carter Worth, Chief Market Technician at Cornerstone Macro, warned that the BTC bottom may be far from in.
Pick your average for a Bitcoin price floor
Analyzing recent price activity and comparing it to Bitcoin bottoms past, Worth said that current levels at around $45,000 represent the top of a support zone.
“Were we to go down 55%, we’d be in the lower end of support,” he summarized.
“I think we’re in support — it’s fighting, but my hunch is it goes lower.”
BTC/USD will level out at just over $29,000 if it fell 55% from its current all-time peak.
This is a good comparison point for Worth since it represents the average of any big price drop of 30% or more since 2011. However, as Twitter users pointed out, his calculations involve incidents such as the 80% drop from all-time highs in 2017 — a process that took over a year to complete.
When both are removed, the average is closer to 36%, which is close to where BTC/USD bottomed this week.
Bitcoin moves on from Elon Musk
In light of the notoriety created by Tesla CEO Elon Musk, the mood among mainstream media on Bitcoin and altcoins is once again cautious.
Furthermore, the mixed fortunes of Coinbase’s COIN suggest that bearish optimism remains the standard for analysts who have spent months in awe of the industry’s gains.
However, as Cointelegraph noted, veteran observers inside Bitcoin circles are unconcerned, pointing to intact long-term market averages and also indicators of bullishness that are already visible.
On Monday, PlanB, the maker of the stock-to-flow BTC price model, attempted to put an end to the Musk saga.
“OK moving on .. with current volatility, BTC at $44K and transaction volumes high, Bitcoin momentum (200 Week Moving Average and Realized Value) is still up and onward,” he commented on an accompanying chart.
Realized value represents the price at which the entire Bitcoin market bought BTC, and continues to advance despite recent volatility.