As an experienced financial analyst who has closely followed the cryptocurrency market for several years, I believe that the recent Bitcoin flash crash, which resulted in losses of around 30% from all-time highs, is not over yet. Based on the current technical formation, it’s likely that BTC will sink below last week’s lows and even break the psychological $50,000 mark.
On the Fourth and Fifth of July, Bitcoin experienced a sudden and significant drop in value, causing losses to reach approximately 30% from its all-time high. A brief rebound occurred over the weekend, raising the price by almost 11%. However, Bitcoin remains trapped within a bearish trend.
Bitcoin Correction Not Over: Will Bears Break $50,000?
As a researcher studying the cryptocurrency market, I’ve observed that one analyst who closely follows Bitcoin (BTC) confirmed my initial assessment regarding its current state. This optimism we’ve seen in the last 48 hours could potentially be dampened during upcoming sessions. It’s important to note that BTC is not yet out of danger from a technical perspective. Based on this analysis, I predict that the coin may sink below the previous week’s lows and even break the significant psychological barrier of $50,000.
Referencing past price trends, the cryptocurrency Bitcoin is predicted to potentially fall to around $48,000 in the near future, which represents a nearly 40% decrease from its current record-high value.
If the coin experiences a similar occurrence as in 2017, where it crashes by approximately 40% following local price highs, then we can expect the coin to continue its upward trend once more.
Despite the analyst’s evaluation, the placement of swing highs and lows using the Fibonacci retracement tool is open to interpretation. At present, if the September 2023 to March 2024 range functions as our reference for highs and lows, a 40% decline from local peaks would result in a Bitcoin price of approximately $37,000 – $10,000 lower than the current levels.
Signs of potential weakness are emerging on the weekly chart. Following the price drop last week, the coin finished below its 20-day moving average, giving sellers the upper hand. A confirmation of these losses could ignite further declines in the near future, potentially driving the highly valued cryptocurrency down to $50,000 or even $40,000.
How High Will BTC Jump After The Correction?
After the price drop and irrespective of the depth, another analyst believes that Bitcoin will rebound powerfully. If Bitcoin manages to hold its ground around the $47,000 to $50,000 mark, the likelihood of it reaching a minimum of $102,000 is significant.
At its current peak, the coin has the potential to reach a height of up to $242,000 during future trading sessions based on the first level of Fibonacci extension.
Based on historical trends, there’s a strong belief that Bitcoin (BTC) will rebound following its recent price drop, which was primarily fueled by concerns over Mt. Gox liquidations and persistent selling from the German government. After experiencing a halving event, the price of Bitcoin typically recovers at a consistent pace.
As a researcher studying the Bitcoin market, I would advise against selling in haste during the initial 79-day period following the Halving event. The Halving occurred approximately three months ago, marking the start of the fifth epoch in the Bitcoin network’s history, during which the miner rewards were reduced.
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2024-07-08 23:46