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A crypto analyst just made a impending Bitcoin (BTC) crashindicating the formation of a bearish descending triangle formation on the price chart of the cryptocurrency. With Bitcoin’s price holding strong above $60,000, the key question now is how low this expected downturn is.
Analyst Confirms Incoming Bitcoin Crash
TradingView crypto analyst Alan Santana has a report warning of possible risks Bitcoin’s current price behaviorindicating a possible price crash caused by the formation of a new descending triangle. Santana noted that currently the price of Bitcoin is trading above $60,000, which is about 20% lower than the March 2024 All-Time High (ATH) of over $73,000.
The analyst assumed that if Bitcoin trading at a lower price level of $37,000, this would represent a 50% decline from March’s ATH. In such a case, this price would be seen as a strong correction from all-time highs.
Santana revealed that too trading at $37,000 would be beneficial for Bitcoinespecially before a major political event such as the upcoming United States (US) presidential election in November. This means that by trading below $40,000 or $37,000, Bitcoin is in for a significant period of time. recovery to new highs.
However, since BTC is currently trading at $63,635, a price close to a critical resistance level, this indicates strong momentum. So if an unexpected event or market shock occurs, it could potentially lead to a huge price drop for the cryptocurrency.
Moreover, Bitcoin has a descending triangle pattern, which the analyst has marked as a bearish signal. He revealed that this pattern broke down on the cryptocurrency’s monthly chart, ultimately confirming one impending price crash.
As a result, Santana warned about that Investors should expect a Bitcoin crashciting the cryptocurrency’s prolonged sideways move with a bearish bias over the past six months. He further disclosed that BTC has been printing lower short- and medium-term highs for over six months, emphasizing that lower highs were indicative of a bearish trend.
Based on the cryptocurrency’s market behavior, the descending triangle pattern and the current price, Santana has predicted that Bitcoin could dip below $49,000. He noted that the next Fibonacci retracement level below $49,000 is around $40,000 to $43,000, meaning the main target for this bearish forecast could be even lower.
BTC’s uptrend depends on the $70,000 breakout
While Santana highlighted the potential for Bitcoin to crash below $49,000, Santana also revealed that Bitcoin could witness a major uptrend if the price can successfully get above the $70,000 mark. He revealed that a strong confirmation above this price is needed for BTC to be considered bullish this cycle.
If the cryptocurrency can reach a one- or two-week weekly or monthly close above $70,000, it could be a bullish reversal for the market. However, as Bitcoin rises and maintains a price above $60,000, the market only sees the liquidation of over-indebted traders and the growth of altcoins.
Featured image created with Dall.E, chart from Tradingview.com