Bitcoin (BTC) Price Faces Major Correction Unless New Rally Happens in Next Two Weeks

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen bull runs and bear markets come and go. The current Bitcoin price action is reminiscent of the dot-com bubble burst in 1999, where the market was driven by hype rather than fundamentals.

The price of Bitcoin (BTC) dropped below $59,000 for the first time in three weeks, indicating a temporary bearish trend across the cryptocurrency market. Despite bouncing back above the crucial support level of approximately $69,000, the possibility of a selloff during New York trading hours might lead to increased crypto market sell-offs over the weekend.

Bitcoin Price Action Signals More Pain before Bullish Rebound

For the first time since September 17, the daily closing price of Bitcoin has fallen below its 50 Moving Average (MA). This means that Bitcoin’s price may end this week on a downtrend that started back in March, indicating a larger-scale bearish trend.

Based on the insights of renowned trader Peter Brandt, Bitcoin’s price might plummet by approximately 75% in the upcoming period due to its continuous downward trend over the past 30 weeks. Unless Bitcoin’s price manages to surpass $66K in the coming weeks, all signs suggest an imminent drop in price.

Looking at technical analysis, Brandt predicts that the Bitcoin price might return to approximately $48,000 before triggering another bullish trend aimed at reaching new record highs within the next few months. But crypto investors need to watch for a consistent close below $48,000 as this could lead to further drops in Bitcoin’s value over the following weeks.

Hello Cryptocurrency Enthusiasts! Have you ever pondered the idea of “price pattern comparisons”? Here’s a thought-provoking question: It has been 30 weeks since Bitcoin reached its All-Time High (ATH). Historically, when Bitcoin hasn’t established a significant new ATH within this time frame, a decline exceeding 75% has taken place.

— Peter Brandt (@PeterLBrandt) October 11, 2024

From my perspective as an analyst, I believe that over the long term, market anticipation continues to be optimistic regarding a possible bullish surge in the near future. However, contrary to popular belief, Bitcoin’s price has not experienced exponential growth following the approval of spot ETFs, upcoming US elections, Federal rate cuts, or the looming conflicts in various nations.

As a researcher, I’ve observed that it could potentially take several months, or even over a year, for the market to see sufficient liquidity supply. However, it’s essential to understand that in the investment world, prices tend to respond to the expectations of market participants before actual events occur. Given this perspective, while we can’t predict exact timing, I am optimistic about seeing notable movement within the 2025 timeframe, as suggested by CryptoQuant.

Crypto Whales Continues to Sell

Over the last several weeks, Bitcoin’s price failed to break through the resistance level of approximately $66,400, leading to a rise in whale investors unloading their holdings, as reported by Coinspeaker earlier. Notably, interest in US spot Bitcoin ETFs has noticeably decreased compared to the immediate post-approval period.

On Thursday, none of the US spot BTC ETF issuers registered a net cash inflow.

On Thursday, U.S. spot ETFs experienced a collective outflow of approximately $120 million, with BlackRock’s IBIT, Fidelity’s FBIT, and ARK 21Shares Bitcoin ETF (ARKB) leading the way.

Over the last three days, as per market data from Santiment, I’ve noticed a substantial selling spree by Bitcoin whales, unloading over 30,000 BTCs with a total value nearing $2 billion. This trend has been accompanied by a decrease in the supply of stablecoins, which seems to have lessened the overall buying pressure from these big-time investors in the recent past.

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2024-10-11 14:25