bitcoin price has stalled after reaching the $71,000 level, floating in what is essentially a limbo of indecision. Naturally, periods like these act as precursors to a massive move, but the direction the price could take is another matter entirely. In an effort to identify where bitcoin is headed, crypto analyst Alan Santana analyzed the bitcoin chart and found a possible direction.
bitcoin Could Be Heading Down
Alan Santana analysis looks at bitcoin's performance over the past year in an attempt to say where the price might be headed. As the analyst notes, bitcoin price has been on a bullish wave for over a year, 479 days to be exact, from November 2022 to March 2024.
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Naturally, when bull waves like these last this long, a drop to the downside is expected as investors begin to sell their holdings. The problem is that the bearish waves after a bullish wave move faster, and since the bullish wave lasts 16 months, the bearish wave is expected to break quickly. As the crypto analyst points out, it is often 2 or 2.5 times faster than the bullish wave.
Explaining the reason behind this, Alan Santana said that “when the market is going up, people are buying, slowly but surely, building a position and enjoying the market and the profits as everything grows. This is not the case when the market changes.”
He further explains that “when a correction occurs, people prepare in advance or sell when they realize that the upside potential has been exhausted. So instead of “building a position”, when most players realize that the wave is over, they tend to close the entire position and therefore the downward movement can really accelerate, and it is That is why the downward movement is faster than when prices grow.”
Taking this into account, the crypto analyst expects that the bearish wave will cause a sharp drop in bitcoin. This, by extension, would affect the rest of the market, which is known to suffer more than bitcoin.
Where does btc price go from here?
In the bearish wave expected by the crypto analyst, he believes that the price of bitcoin could fall more than 30% from its current price of $71,000. The chart shows a possible initial drop to $60,000 levels, and then expects it to continue.
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At the base of this decline is the $47,943 level, presumably where the analyst expects the decline to end. If this happens, then the price of btc could see a drop of approximately 33%, something that could be incredibly bearish for the market.
Featured image created with Dall.E, chart from Tradingview.com
