Bitcoin does now approaching $70,000 but there’s plenty to worry about around $64,000. Crypto analyst Tara expressed concern that Bitcoin’s fifth wave may not be complete, predicting that there may be further downside ahead.
In a recent post on X, the analyst noted that the current move could be the beginning or the next step last stretch of a fifth wave troughand there is still a possibility of Bitcoin price falling to $52,000.
Double bottom support at $59,900 and $60,500
Technical analysis performed by crypto analyst Tara shows that Bitcoin has built a key support around $59,900 to $60,500. This area is based on previous swing lows and a visible double bottom formation on the 4-hour candlestick price chart. It also coincides with deeper Fibonacci retracement levels projected from above $70,000.
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According to the analyst, Bitcoin could see a strong reaction if the price were to drop to that region. A rebound from this support could push Bitcoin price back towards $64,400, which would then be tested as resistance rather than support.
However, such recovery can only be temporary. If the macro fifth wave structure continues to develop, the market could still prepare for a final push lower after that retest. According to Tara’s wave interpretation, this final push down could amount to as much as $52,000.
This level is not yet locked in and will be remeasured as price action develops, but it represents a possible completion zone for the broader fifth wave. It is important to note that Bitcoin actually managed to keep more than $60,000 during February, so therefore the $52,000 expectation is a worst-case scenario.
Interestingly, the Relative Strength Index indicator is trending lower over a four-hour period and approaching oversold territory. Tara advised traders to watch for bullish divergence in the RSI during the next decline. A bullish divergence on the RSI could be the first sign of the end of the correction structure.
Bitcoin could register higher support at $64,000
The $64,000 region has stood out in recent weeks as a decisive pivot for Bitcoinwhich repeatedly switches between support and resistance depending on the direction of the price. In a separate updateTara highlighted that Bitcoin recently tested the macro 0.5 Fibonacci level at $64,400 as resistance before attempting to move higher.
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Reclaiming $64,000 would be an important step toward reversing the current bearish macro trend. At the time of writing, Bitcoin is trading around $68,220, up 4% in the last 24 hours. Yet that is true still a risk of relapse.
A drop below $64,000 would weaken the near-term recovery and could expose the previous swing low at $60,500. On the other hand, bullish momentum would be confirmed if Bitcoin breaks above $70,000.
Featured image of Pngtree, chart from Tradingview.com