Although the Bitcoin price is quite nicely higher than $ 100,000 and remains very close to its high level, there is still expectations of a huge crash that would fluctuate the market. Pseudonymous crypto -analyst -FriendsingFraglanrox points to a number of indicators for this, going from volume to Momentum, all point to a possible price crash. What is the expected result of this? The loss of the psychological level of $ 100,000 and then fall to earlier peaks.
Bitcoin -price in danger with decreasing volume and momentum
In the analysis, Friendlyrox marked The decrease in the most important statistics such as Momentum and Volume as the most important motivation of the predicted price crash. This is in the midst of Bullish news that dominates the headlinesSuch as institutions that increase their bitcoin companies and delivery on exchanges that fall to new lows, which means that investors choose to keep for higher prices.
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The fall in the volume was clear after the Bitcoin price had fallen less than $ 100,000 before he bounced again in June. So far, the Bitcoin trading volumes are lower in July, with data from Coinglass that display consistent daily volumes lower than $ 100 billion. At the same time, there has also been a decrease in the momentum, where the analyst points to a negative divergence in this metric.
Moreover, the Bitcoin price has also flashed a historic trend that is usually for the market picks before. This is the price that the 50 EMA reaches (exponentially advancing average) and then retreating. Friendlyrox revealed that in the past, when the Price hit the 50 EMA And then it extended back, it was usually a crash and the Bitcoin price has now done this, which extends even further.
Other statistics that also flashed Barisitos are the RSI and the MacD, both of which now show a loss of Momentum while they went into negative. All these factors that happen together at the same time have painted a pretty bleak picture for the leading cryptocurrency per market capitalization.
BTC Bottom goals
With the line -up of Bearish developments, the Crypto analyst has predicted a about 50% of here. As the volume continues to decrease and momentum slides into the negative, they expect the Bitcoin price to go back to the 50 EMA.
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The interesting fact here is that the 50 EMA falls under the previous Bitcoin price peak, making it to $ 60,000. A crash of this size would only be matched by the COVID crash in 2020 and the market crash induced by FTX in 2022. But nevertheless this would mean a seesawout for Altcoins across the board.
Regarding the time frame for when this could happen, there is no clear timeline. According to the graph of the analyst it can take a few years before this plays completely, where the analyst closes with: “Let’s see how it unfolds.”
Featured image of dall.e, graph of tradingview.com