The Bitcoin price has bounced back to the $56,000 level after a short pump triggered by Thursday’s CPI data release, which showed inflation at 3%, lower than expected. This bearish trend has continued despite desperate attempts by bulls to keep the price high. Even then, a crypto analyst doesn’t believe the decline is over and expects the decline to continue from here on out.
Bitcoin dump far from over
A crypto analyst on the TradingView website, who goes by the pseudonym ‘Luca VIP’, has done just that expressed bearish trends for Bitcoin price in the future. In the analysis, the crypto analyst points out that the reason for the current Bitcoin price fluctuations is the fact that it has reached a resistance of $59,000 after the pump.
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As a result of this rejection, the cryptocurrency is currently in a consolidation phase, which threatens to continue from here on out. Moreover, BTC price is still showing sideways performance even after Thursday’s surge, indicating that the bears are still firmly in control of the price.
Furthermore, the crypto analyst charts a possible downtrend from here, reaching as low as $56,000 until the decline is over. What is important, however, is what happens after Bitcoin price reaches this expected support level.
Luca explains that despite the decline, the BTC price has formed a W pattern, which is historically a bullish pattern. In this case, a bullish reversal is expected that could lead to a retest of the $59,000 level. If the retest is successful, the crypto analyst will set the Bitcoin price above $60,000 again.
“BTCUSDT may retest the resistance zone at $59,000. A successful break above this level could push the price to higher targets, possibly around $60,000 or higher,” the crypto analyst said.
Is it time to buy BTC?
While the market is still reeling from Bitcoin’s price drop, some crypto analysts believe now is a good time. Another pseudonymous analyst who goes by ‘RLinda’ on the TradingView website shared this sentiment recently.
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According to the analyst, the drop to $57,000 provides a good opportunity to get into position for Bitcoin, especially as the ongoing sell-off has plunged the market into fear. Apparently, BTC price is heading for a renewal of local highs.
RLinda’s position is supported by the fact that the Crypto Fear & Greed Index has fallen into Extreme Fear, which has historically been the best time to position for cryptocurrencies. If we go by historical trends, the price could trade sideways for a while before finally finding strong support and seeing an upswing.
Featured image created with Dall.E, chart from Tradingview.com