Last week, the Bitcoin price fell to a local low of $56,800. Since then, the digital currency has managed to stage an impressive recovery, but according to some analysts, the correction is not over yet. Is a Bitcoin price fall to the level of 50,000 still possible?
American regulatory pressure on the Bitcoin price
CoinDesk analysts claim that the current downward pressure on the Bitcoin price is the result of new American regulatory pressure.
For example, the popular stock platform Ronbinhood (HOOD) received a Wells Notice from the US Securities and Exchange Commission (SEC) this weekend. That is an announcement that they can soon expect an invitation for a lawsuit from the regulator.
The SEC would like to file this lawsuit against Robinhood’s crypto platform, which means there is a chance that they will have to close that branch of the company.
In theory, that could cause many people to leave the industry. For many people, Robinhood was an easy platform to buy their Bitcoin. In any case, CoinDesk’s theory is that the Bitcoin price is under pressure due to this news.
Bitcoin hasn’t seen its bottom yet
Bitcoin ended last week on a bullish note after its rapid recovery from the $56,800 price point. However, John Glover, the head of the investment department at Ledn, sees possibilities for a new pullback to even lower prices.
“Although the dip to $56,500 is complete due to the correction, I still expect a Bitcoin price of $52-55,000 before the fourth wave is complete,” Glover said.
With his waves he refers to the Elliott Wave Theory from technical analysis, which is based on the psychology of the crowd, which, according to the theory, manifests itself in waves.
After the last correction wave, Glover expects a closing fifth wave that will then lift the Bitcoin price to “approximately $92,000”. This was his conclusion to CoinDesk.
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