The Bitcoin price broke above $75,000 earlier this week, marking the highest level for the pioneer cryptocurrency in more than a month. But while this move has led to an improvement in overall investor sentiment, it could ultimately become a pitfall. This is reported by analyst TheOnePct, who explained that the right move could ultimately be part of a larger flat correction that began years ago. In this case, it would only be a matter of time before the Bitcoin price drops again.
Bitcoin Break Confirms Structural Weakness
The analysis tracks the Bitcoin price movement since 2021 and indicates that this is the current movement still part of the correction which started almost five years ago, after the 2021 bull market. Instead of marking the bottom for BTC, the crypto analyst explains that it is likely a B wave of the flat correction.
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Current price movements, the analyst suggests, are actually “structurally consistent” with this flat correction. One of the things that seems to correlate is the fact that the Bitcoin price has seen a very aggressive decline. It coincides with the C wave of a flat correction, which means even more bad luck for the cryptocurrency.
Another thing the analyst mentions is that the current C-wave appears to be terminal in nature. This simply means that the current trend is inherently corrective. As a result, even after the correction, it is likely that the price will reverse and fall further.
What to expect
The analyst interprets the Bitcoin price drop and says the trend suggests that Wave 1 has not actually bottomed out yet. If that is the case, the recovery to $70,000 may only be temporary. Not only this, but also that the digital asset is likely to form a diametric pattern.
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Based on this, the crypto analyst says Bitcoin price is likely to move through Wave F, which could be ultimately more complex as for the lateral movement. Ultimately, however, this is expected to end in a decline, leading to Wave G.
Wave G is more bearish than the previous wave, and as the price starts to move, it is expected to drop below $60,000 and reach somewhere around $55,000. “BTC has already shown clear structural weakness, and that weakness will likely continue to haunt the market for quite some time,” the analyst said. “This could leave the market in a bearish environment for longer than most expect.”
Featured image of Dall.E, chart from TradingView.com