Bitcoin Price Correction May Continue, Analyst Warns
Bitcoin (BTC) recently reached a new all-time high of $73,750 before experiencing a significant price correction. While the cryptocurrency has seen some minor gains in the past 12 hours, popular analyst Michaël van de Poppe predicts that the correction may not be over yet. In a recent post on X, van de Poppe suggested that Bitcoin could fall as low as $57,000, indicating that the coin may have peaked before its halving event. This prediction is based on the presence of a bearish divergence, which suggests that the upward trend of an asset is weakening and a reversal may be imminent.
Bearish Divergence Signals Potential Price Drop
A bearish divergence occurs when the price of an asset forms higher highs while the corresponding indicator forms lower highs. In the case of Bitcoin, this bearish divergence indicates that the recent rally may be losing momentum and could result in significant negative price movements. Van de Poppe highlighted BTC’s rejection at the $70,000 zone during its attempted market rebound as evidence supporting this theory.
#Bitcoin remains to have a valid bearish divergence.
This is confirmed by the lower timeframe, lower highs, and clear rejection at $70.5K.
For this correction, I’d be targeting $57-61K, and, likely, we’ll have peaked pre-halving.
Altcoin summer is on the horizon. pic.twitter.com/bGmnHcVDnz
— Michaël van de Poppe (@CryptoMichNL) March 15, 2024
Predicting Bitcoin’s Price Correction
Van de Poppe predicts that Bitcoin will continue its price correction and potentially fall within the range of $57,000 to $61,000. If this prediction holds true, it could indicate that the BTC market will reach its highest value prior to the halving event, similar to previous cycles. The Bitcoin halving is typically preceded by a price rally followed by a significant retracement of 20% to 40%. With the next halving scheduled for April 2024, van de Poppe believes that further retracement by Bitcoin could mark the end of the pre-halving rally.
Current BTC Price Overview
According to data from CoinMarketCap, Bitcoin is currently trading at $69,027 with a 0.17% increase in the last hour and a 1.26% increase in the last day. The daily trading volume for BTC has also increased by 1.20% and is valued at $69.58 million.
[Insert Bitcoin weekly chart image here]Hot Take: Bitcoin Correction May Continue
While Bitcoin experienced a significant price surge recently, reaching a new all-time high, there are indications that a price correction may not be over yet. Analyst Michaël van de Poppe suggests that Bitcoin could fall to as low as $57,000 due to a bearish divergence pattern. This pattern suggests that the upward trend of Bitcoin may be weakening and could result in further negative price movements.
If van de Poppe’s prediction holds true, it could mean that Bitcoin has already peaked before its upcoming halving event. Historically, Bitcoin tends to experience a rally followed by a retracement prior to the halving. With the next halving scheduled for April 2024, further retracement could mark the end of the pre-halving rally.
Currently, Bitcoin is trading at $69,027 with a slight increase in the last hour and day. The daily trading volume for Bitcoin has also seen a modest increase. It remains to be seen whether Bitcoin will continue its price correction or resume its upward trend.
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