This article is also available in Spanish.
A crypto analyst just confirmed a imminent bitcoin (btc) crashpointing to the formation of a bearish descending triangle on the cryptocurrency price chart. With bitcoin price holding strong above the $60,000 mark, the key question now is how low this anticipated downturn is.
Analyst confirms incoming bitcoin drop
TradingView crypto analyst Alan Santana has published a bitcoin-50-Down-vs-20-Down/”>report warning of possible risks in bitcoin-prepares-for-major-rally-to-new-peak/” rel=”nofollow”>The current behavior of the price of bitcoinwhich points to a possible drop in prices driven by the formation of a new descending triangle. Santana pointed out that currently, the bitcoin-price-go/” rel=”nofollow”>bitcoin price is trading above $60,000, which is about 20% off its March 2024 all-time high (ATH) of over $73,000.
The analyst hypothesized that if bitcoin were trading at a lower price level of $37,000, this would represent a 50% decline from its March ATH. In such a case, this price would be seen as a strong correction of all-time highs.
Santana also revealed that trading at $37,000 would be advantageous for bitcoinespecially before a major political event like the upcoming United States (US) presidential election in November. This means that by trading below $40,000 or $37,000, bitcoin should receive a significant recovery to new highs.
However, given that btc is currently trading at $63,635, a price close to a critical resistance level, this indicates strong momentum. As such, if an unexpected event or market shock occurs, it could potentially trigger a bitcoin-dominance-hinting-at-possible-dip-to-47-altseason-on-the-horizon/” rel=”nofollow”>massive cryptocurrency price drop.
Furthermore, bitcoin has formed a descending triangle pattern, which the analyst has pointed out as a bearish signal. He revealed that on the monthly chart of the cryptocurrency, this pattern broke down, ultimately confirming a crypto-warning-arthur-hayes-foresees-short-term-market-crash-linked-to-interest-rate-cuts/” rel=”nofollow”>imminent price drop.
Consequently, Santana has warned that Investors should expect a bitcoin drop.citing the cryptocurrency's prolonged sideways movement with a bearish bias over the past six months. Furthermore, he revealed that btc has been recording lower highs in the short and medium term for over six months, highlighting that the lower highs were an indication of a bearish trend.
Based on the cryptocurrency market behavior, the descending triangle pattern and the current price, Santana has predicted that bitcoin could fall below $49,000. He noted that the next Fibonacci retracement level below $49,000 lies between $40,000 and $43,000, meaning the primary target of this bearish forecast could be even lower.
btc Uptrend Hinges on Breakout of $70,000
While emphasizing the potential for bitcoin to fall below $49,000, Santana also revealed that bitcoin-price-could-surge-following-chinese-economic-stimulus-heres-why/” rel=”nofollow”>bitcoin Could Witness a Major Uptrend whether its price can successfully surpass the $70,000 mark. He revealed that strong confirmation above this price is necessary to consider btc bullish in this cycle.
Specifically, if the cryptocurrency can achieve one or two weekly or monthly closes above $70,000, it could spark a bitcoin-eyes-65000-for-bullish-breakout-metrics-reveal-high-liquidity-above-this-level/” rel=”nofollow”>bullish change for the market. However, while bitcoin is rising and maintaining a price above $60,000, the market is only seeing the liquidation of over-leveraged traders and the growth of altcoins.
Featured image created with Dall.E, chart from Tradingview.com
