02.07.202118:49 Forex Analysis & Reviews: Bitcoin bulls' optimism fades: crypto winter has already arrived

If we consider the Bitcoin chart locally, then the previous forecast and recommendations remain unchanged. The sideways at 31,082.82 - 41,980.24 is relevant, it is recommended to buy or sell from its borders.

But the outlook for long-term investors began to shift towards a bearish scenario. Even convinced Bitcoin bulls have started talking about crypto winter.

In an interview, ADVFN CEO Clem Chambers said his optimism about Bitcoin had subsided. Now he has taken a bearish position, claiming that the price of the main cryptocurrency will fall to $10,000 within the current cycle.

Chambers was interviewed by Stansberry Research Chambers, who predicted in 2018 that the cryptocurrency would return to $20,000, and if "the asset's market mechanism remains viral," it could grow to $200,000 or even $2 million.

Now the CEO of ADVFN believes that the price of Bitcoin will drop to $20,000 soon. And the bear market will end when Bitcoin hits the bottom at $10,000. Moreover, the lower limit of the range, noted by Chambers, may turn out to be slightly higher, in the range between $12,000 and $13,000.

He draws such conclusions based on the fact that Bitcoin "repeats the same old patterns over and over again." According to him, in 2011, 2015, 2017, and 2021, the same situation occurred on the chart of the main cryptocurrency after the halving. "It takes off like a rocket and falls like a rock," Chambers said.

According to him, when BTC/USD falls like a rock, it reaches the bottom "about twice as high" compared to the previous market low. And since the last time, the market reached the bottom on average at the level of $5,000, which means that now it will reach the lower limit at the level of $10,000.

Chambers believes that this time the market would have peaked at $40,000 if institutions hadn't started investing in Bitcoin and brought it to the $60,000 mark.

The CEO noted that he expects a crypto winter in the near future, where Bitcoin could drop below five-digit levels before traders capitulate. In fact, the crypto winter is "already here," and if traders remain long, "it will only get worse."

Chambers said the fall looks exciting to him because investors can build up positions by averaging dollar value over a long period, waiting for the next spike, which may occur after the next halving.

He said that he plans to use this strategy to buy for three years until he has a "huge position" before the next bullish move. Ultimately, he intends to sell his Bitcoins for $90,000 or more when the cycle repeats.