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Despite initial expectations of a steady price increase and a robust bull run this year, Bitcoin (BTC) has suffered severe declines, pushing its price below the $60,000 threshold. Due to the cryptocurrency’s long-term bearish performance, a crypto analyst has warned that Bitcoin could fall even further potential crash below $40,000. However, the analyst also provides a silver lining to his bearish outlook, anticipating a big rebound from the decline.
Bitcoin could be headed for a $40,000 crash
A crypto analyst known as ‘Magog PhD’ joined X (formerly Twitter) on September 1. part a unique encounter he had with an alleged Bitcoin billionaire. The analyst recounted an unusual experience during his summer job as a waiter at a New York restaurant, where a Bitcoin billionaire passed a piece of paper across the table in the form of a tip.
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Upon examination, the paper revealed that there was a card prediction Bitcoin’s future price trajectory. The chart illustrated that Bitcoin’s price was expected to fall below $32,000, which would mark a massive drop to new lows. In recent months, the price of Bitcoin has seen strong volatility large-scale liquidations which have led to a serious price drop.
At one point the cryptocurrency plummeted by more than 20%, dip below $50,000 before returning to almost $60,000. The demand for Explore Bitcoin Exchange Traded Funds (ETFs) have also seen a sharp decline, which likely plays a role in Bitcoin’s recent development downward trend.
Although the Bitcoin price chart predicts that the cryptocurrency will crash below $32,000, it also illustrated that Bitcoin would Possibly witnessing a major outbreak after falling above $76,000. A similar bullish sentiment is shared by fellow crypto analysts in the market.
According to technical analyst and Bitcoin trader ‘Titan of Crypto’, Bitcoin is currently forming a unique technical pattern called the ‘Cup and Handle pattern’. Often seen as a bullish continuation signal, the Head and handle is a technical chart pattern that emphasizes a period of consolidation following an uptrend, followed by a slight pullback and an eventual breakout to the upside.
Based on this technical pattern, the analyst states believes that Bitcoin is likely to break through soon and reach a potential price target of $110,000. He revealed that this bullish price move could take place in the last quarter of the yearemphasizing that the cryptocurrency’s recovery “will be epic.”
BTC achieves Historic Weekly Golden Cross
Bitcoin may have reached a historic milestone, just like crypto analyst Jelle identified the formation of a weekly Golden Cross on the Bitcoin price chart for the first time ever.
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The golden cross occurs when a short-term moving average (MA) exceeds a long-term MA. This week, Bitcoin’s 100-week MA surpassed the 200-week MA, highlighting a strong bullish signal that may tractor a huge bull run for the cryptocurrency.
Featured image created with Dall.E, chart from Tradingview.com
