As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear runs, from the Dotcom bubble to the 2008 Financial Crisis, and now, the crypto revolution. While it’s always exciting to be part of such a dynamic industry, it also requires a keen eye for detail and an unwavering understanding of market trends.
As a researcher delving into the world of cryptocurrencies, I’ve recently observed a crypto analyst’s prediction of an upcoming Bitcoin (BTC) correction. This forecast is based on the emergence of a bearish descending triangle pattern on Bitcoin’s price chart. Given that Bitcoin’s value currently hovers above the $60,000 threshold, the crucial question now revolves around how significantly this projected decline might occur.
Analyst Confirms Incoming Bitcoin Crash
crypto expert Alan Santana from TradingView has issued a cautionary report, highlighting potential dangers in Bitcoin’s current price trend, suggesting a potential price plunge due to the development of a new descending triangle. Santana emphasized that Bitcoin’s current trading value is around $60,000, approximately 20% below its record high of over $73,000 set in March 2021.
According to the analyst’s assumption, if Bitcoin was trading at $37,000, it would mean a drop of 50% compared to its peak in March (All-Time High). In such a scenario, this price point would be considered a significant correction from the all-time highs.
Santana mentioned that buying Bitcoin at around $37,000 could prove beneficial, especially considering the upcoming United States Presidential elections in November. This suggests that if the price drops below $40,000 or $37,000, Bitcoin is likely to experience a substantial recovery and reach new record highs.
Given that Bitcoin is presently valued at around $63,635, which is near a significant resistance point, this suggests a powerful upward trend. If any unforeseen incident or market turbulence happens, there’s a possibility it might initiate a substantial drop in the cryptocurrency’s price.
Additionally, Bitcoin appears to have developed a descending triangle configuration, which some analysts interpret as a warning sign for a potential price decline. They pointed out that on Bitcoin’s monthly chart, this pattern has broken below, indicating a possible upcoming drop in its value.
Due to recent market trends, Santana advises investors to brace for a potential drop in Bitcoin’s value. He bases this warning on Bitcoin’s extended period of sideways movement with a negative slant over the past half year. Moreover, he revealed that Bitcoin has been showing lower highs in both short-term and mid-term price action for over six months, which suggests a bearish trend since lower highs indicate a downturn.
According to Santana’s analysis of Bitcoin’s market trends and the descending triangle pattern, he anticipates that the price of Bitcoin might fall below $49,000. He pointed out that a potential drop zone lies between $40,000 and $43,000, which represents the next Fibonacci retracement level. This suggests that the predicted bearish trend could reach levels lower than this range.
BTC Uptrend Hinges On $70,000 Breakout
While emphasizing the potential for Bitcoin to crash below $49,000, Santana also disclosed that Bitcoin could witness a major uptrend if its price can successfully break above the $70,000 mark. He revealed that a strong confirmation above this price is necessary to consider BTC bullish this cycle.
If the cryptocurrency manages to end a week or month with a closing price above $70,000, it could potentially trigger a bullish reversal in the market. Yet, as Bitcoin climbs and stays above $60,000, what we’re seeing is excessive traders getting forced out of their positions and an increase in the popularity of alternative cryptocurrencies.
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2024-09-26 21:04