A crypto analyst has shared two interesting scenarios that she thinks the Bitcoin price could follow depending on the direction of its next moves. According to the analyst a price breakdown to new lows near $50,000 could be bullish for BTC, suggesting the cryptocurrency could turn upside after hitting the bottom. On the other hand, she also shared a bearish thesis, which could mean that the flagship cryptocurrency is already expanding its status long-term downward trend.
A possible bullish scenario for the Bitcoin price
Crypto market analyst Tara has done just that presented a price chart showing a detailed roadmap for Bitcoin depending on whether it breaks up or down. Currently, the cryptocurrency is trading sideways with no clear direction despite the latest upswing. Tara has described this recent jump above $71,000 as “noise,” noting that it has done nothing to make the cryptocurrency’s path clearer.
At the time of her analysis, posted on For her bullish outlookThe analyst predicts that BTC will need to break the 0.382 resistance level to make the cryptocurrency’s mid- to long-term price targets more visible.
In her price chart, the analyst outlines an ABC pattern that shows where Bitcoin could move next, along with its higher price targets once resistance is broken. If the cryptocurrency breaks below the 0.618 support at $69,891 and reaches $50,000, Tara predicts that Bitcoin could eventually gather enough bullish momentum to break past the bearish $93,200 resistance.
Once this happens, Tara predicts that Bitcoin could explode to a new all-time high the current peak of about $126,000, officially ending the downward trend. Although she shared an alternative bearish thesis, the analyst notes that the ATH breakout is her preferred and most likely scenario for Bitcoin at this time.
The alternative downward path
Alternatively, Tara warns that if Bitcoin rises above $90,000 without a meaningful correction, it could set the stage for a sharp price crash. In support of her bearish outlook, the analyst points to the same ABC pattern on the chart, which paints a clear downward trajectory for BTC.
The analyst noted that a break to the upside would align with the larger ABC structure, potentially pushing Bitcoin towards the highest resistance at $93,200. However, she maintains a strong bearish medium-term outlook and warns that such a move could be possible extend the ongoing correction phase.
According to her projections, the next major downside target is around $29,000, which marks a significant cycle low and represents a decline of over 68% from the previous resistance at $93,200 and a decline of around 55% from the current price above $71,500.
Featured image created with Dall.E, chart from Tradingview.com