Expert Warning: Bitcoin May Experience Price Crash Soon
A cryptocurrency trading expert has issued a cautionary warning to Bitcoin (BTC) investors, suggesting that a price crash might be imminent as the maiden digital asset struggles to break through the $65,000 resistance level. In a recent post, analyst Alan Santana highlighted signs indicating a possible downturn in Bitcoin’s price. Santana pointed to Bitcoin’s technical indicators and recent price movements as evidence supporting the likelihood of a forthcoming crash. The expert identified a troubling pattern reminiscent of a cap formation, suggesting a looming trend reversal. Compounding this observation, the all-time high and subsequent lower high sessions concluded with red candle closures below the critical Exponential Moving Average (EMA) 10, signaling a bearish trajectory for Bitcoin.
Bitcoin’s Potential Price Drop
Given these concerning indicators, Santana painted a grim outlook for Bitcoin in the upcoming week. He envisioned an initial downward plunge towards the EMA50, projected to be around $46,000, as the cryptocurrency faces increasing pressure from sellers. The anticipated decline is poised to initiate a brief rebound, followed by a temporary lower high, as noted by the analyst. Subsequently, the analyst predicts that Bitcoin may further drop below $40,000. This projected scenario could significantly impact Bitcoin investors’ hopes that the leading cryptocurrency will maintain support above the $60,000 threshold.
- Market Projection:
- Expect a drop toward EMA50 (~$46,000) followed by a bounce and short-term lower high.
- Further drop below $40,000 may occur with a test of MA200 around $34,000.
In the short term, technical indicators suggest that Bitcoin will likely revisit the $72,000 mark. Bitcoin’s current challenges come amidst heightened institutional interest, with major US banking giants like Wells Fargo and JP Morgan disclosing significant holdings in Bitcoin-related assets.
Bitcoin’s Current Price Analysis
By press time, Bitcoin was trading at $61,040 with daily losses of almost 0.3%. On the weekly chart, BTC is down 4%. As things stand, Bitcoin can potentially realize Santana’s projection if it fails to hold the current $60,000 support. Therefore, the level remains a crucial spot to watch.
Hot Take: Stay Cautious Amid Bitcoin’s Potential Price Volatility
As a crypto enthusiast, it’s essential to stay informed and aware of potential market movements, especially during uncertain times like the current warning of a Bitcoin price crash. Keep a close eye on Bitcoin’s price actions and technical indicators to make informed decisions about your investments in the crypto space. Remember, while the market may present challenges, it also offers opportunities for those who are prepared and vigilant.
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