Bitcoin is set for a rough ride now that it has dropped to the $7,000 support, investor and financial writer Jani Ziedins said in a blog post on Thursday. In his Cracked.Market blog, Ziedins wrote that, "This cryptocurrency [Bitcoin] had a very ugly May and it looks like things will only get worse."
"This is a long-term downtrend and lower lows are still ahead of us," he added.
Ziedins had predicted a few weeks back, when Bitcoin fell to the $8,000 support that cryptocurrencies were very much in a downtrend and lower prices could be expected in future. "It takes most bubbles between 6 and 24 months to finish bursting," the analyst wrote then.
"If bitcoin is like most bubbles, that means the worst is still ahead of us and we should expect lower-lows over the next few months."
Now, Ziedins reckoned that this is a "long-term" downtrend and lower lows are still ahead.
"Breaking $7k support will trigger to another wave of selling, but the fear won't strike in earnest until we undercut the $6k lows," he wrote.
Ziedins pointed out that double-bottoms were a common and powerful reversal pattern.
However, no one talks about triple-bottoms, because they are not a real thing. "Hit bottom three times and you are headed much lower," the analyst added.