Bitcoin (BTC) Price Could Be Dropped Further by 20%, Analysts Say 😱

Bitcoin Market Update: Are We at the Bottom Yet?

Bitcoin (BTC) experienced a significant 20% decline over the weekend, with a brief dip below the crucial $50,000 support level. This drop had a ripple effect across the entire crypto market, resulting in a 23% crash in the last three days. While there has been a slight recovery in some key levels since then, analysts are cautious and believe that the market may not have stabilized yet.

Assessing Bitcoin’s Current Situation

After Bitcoin fell below $50,000, noted crypto analyst Altcoin Sherpa provided insights into the flagship cryptocurrency’s performance. He suggests that Bitcoin may have hit one of its potential bottoms on Monday morning when it reached the $49,000 support region. This steep drop to the $49,000-$50,000 range, which equated to a 17% decline in less than 24 hours, could serve as a bottom, according to Sherpa. However, he warns that lower support levels might still be tested in the near future.

The $49,000-$50,000 area could be a potential bottom for Bitcoin
Analyst anticipates further testing of lower support levels
Similar price action to 2021 rally observed by the analyst

According to Sherpa, Bitcoin’s price movement is reminiscent of its behavior during the 2021 bull run. He notes that back then, the consolidation region in January played a crucial role in forming a temporary bottom during the summer. After a severe dump in the summer of 2021, akin to the current crash, Bitcoin gradually bottomed out over several months.

Analogous price action to the summer 2021 rally observed
Potential key area at the January 2024 price range
Previous forecast suggests market recovery by Q4 2024

Sherpa speculates that the January 2024 price range could be pivotal, similar to the consolidation region in 2021. He reiterates his earlier prediction that the market is likely to pick up pace in the fourth quarter of 2024 and extend into the first quarter of 2025, advising investors to hold on until then.

“What’s going to happen after this dump is anyone’s guess; my personal one is that we chop around for the next several months after this dump is over and then have a great Q4-Q1 of 2025. Survive until then.”

Deepest Retrace in the Current Cycle for BTC

Rekt Capital, a market analyst, highlighted that the recent Bitcoin crash represented the deepest retrace of the current cycle. The 29% drop witnessed in the last two weeks surpassed the 23% and 25% corrections seen in May and July, respectively. Another analyst, Crypto Bullet, compared Bitcoin’s chart to the 2020 COVID-19 crash, noting similar patterns.

BTC’s recent correction surpasses previous drops in May and July
Analyst compares current BTC chart to the 2020 COVID-19 crash
Bitcoin testing lower support levels within a descending broadening wedge pattern

Similarly, Crypto Bullet pointed out that Bitcoin displayed a Descending Broadening Wedge pattern akin to the one seen during the COVID-19 crash in March 2020. After a dump in March 2020, Bitcoin recovered its price and broke out of the pattern over the following months. Testing lower support levels within the pattern could hint at an impending recovery in Bitcoin’s price.

Bitcoin could be poised for a recovery based on current patterns
Price currently holding within the descending broadening wedge
Recovery anticipated based on historical price movements

Moreover, Crypto Jelle highlighted that Bitcoin’s price was at a critical juncture during the weekly opening. With BTC still within the descending broadening wedge pattern and maintaining key support levels, Jelle emphasized the importance of daily closing prices for market sentiment.

Bitcoin’s price at crucial levels during the weekly opening
Importance of daily closing prices for sentiment analysis
Current performance indicates potential recovery

Lastly, analyst Ali Martinez emphasized the significance of Bitcoin reclaiming the $54,000 support level to avoid a slide towards $40,000. Utilizing BTC’s MVRV Pricing Bands, Martinez suggested that if the current price level is sustained, Bitcoin could retest the $67,000 resistance level in the near future.

Key support level at $54,000 crucial for Bitcoin’s price stability
Potential retesting of $67,000 resistance level
Bitcoin’s current price at $54,320

Hot Take: What’s Next for Bitcoin?

As Bitcoin navigates through a volatile period marked by significant price swings and market uncertainties, it is essential for investors to exercise caution and closely monitor key support and resistance levels. While analysts provide valuable insights and predictions, the crypto market remains inherently unpredictable. As Bitcoin’s price attempts to stabilize and recover from recent dips, staying informed and adopting a prudent investment strategy is paramount for navigating the evolving crypto landscape.

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