Bitcoin price has stalled after reaching the $71,000 level and is floating in what is essentially a limbo of indecision. Periods like these obviously act as a harbinger of a huge movement, but which way the price goes is something completely different. In an effort to determine where Bitcoin is headed, crypto analyst Alan Santana has analyzed the Bitcoin chart and come up with a possible direction.
Bitcoin could go down
Alan Santana’s analysis looks at Bitcoin’s performance over the past year in an attempt to determine where the price might go. As the analyst notes, Bitcoin price has been in a bullish wave for over a year, 479 days to be precise, from November 2022 through March 2024.
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If these types of bullish waves continue for so long, a downside crash is obviously expected to occur as investors start selling off their holdings. The problem is that bearish waves move faster after a bullish wave, and because the bullish wave lasts for 16 months, the bearish wave is expected to unravel quickly. As the crypto analyst notes, this is often 2x or 2.5x faster than the bullish wave.
Alan Santana explained the reason behind this, saying: “When the market goes up, people buy slowly but surely, build a position and enjoy the market and the profits as everything grows. This is not the case when the market is turning.”
He further explains: “When a correction occurs, people prepare in advance or sell when they realize the upside potential has been exhausted. So instead of ‘building a position’, when the majority of players realize the wave is over, most players tend to close out the entire position, and that can really accelerate the downward movement, and therefore, the downward movement is faster than when prices move upward. to grow.”
Given all this, the crypto analyst expects the bearish wave to be accompanied by a sharp crash for Bitcoin. This would by extension impact the rest of the market, which is known to suffer more than Bitcoin.
Where does the BTC price go from here?
In the bearish wave that the crypto analyst expects, he believes that the Bitcoin price could crash more than 30% from the current price of $71,000. The chart shows a possible initial crash towards the $60,000 level, after which it is expected to continue further.
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At the low end of this crash is the $47,943 level, presumably the level at which the analyst expects the crash to end. If this happens, BTC price could expect a crash of around 33%, something that could be incredibly bearish for the market.
Featured image created with Dall.E, chart from Tradingview.com