If the bitcoin price falls below the important year-to-date support level, the dominant cryptocurrency will suffer irreparable damage in the marketplace. This is the opinion of Research, quoted by CNBC
Bitcoin May Be ‘Permanently Impaired’
what bitcoin is facing right now could be more significant than just a retracement. The cryptocurrency could facing an existential crisis, with its key year-to-date support level being the buffer between it and more substantial damage. Break that level, says Research, and bitcoin will be “permanently impaired.”
deGraaf said:
“Parabolic moves are notoriously dangerous for short‐sellers … Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or game over".
Bad News
deGraaf’s words will come as bad news for cryptocurrency investors because he is a personality that markets generally tend to take note of when he speaks.
deGraaf has been recognised severally for accurate predictions and peerless analysis. For a total of 10 years, he has been ranked as top technical analyst by Investor Magazine, and in 2014 he was inducted into the Institutional Investor’s Research Hall of Fame.
What all of this potentially means to an investor is that one of Wall Street’s finest analysts has painted a scenario where bitcoin - down about 50 percent in 2018 — is not going on a bear run it will recover from, but is rather drifting toward a position of permanent damage.