Crypto analyst Tony Severino has revealed a historic bearish pattern that could send the Bitcoin price to $42,000. This bearish outlook for BTC comes amid a recovery for the flagship crypto, with a recent surge above the psychological $90,000 level.
Bitcoin price risks drop 50% to $42,000 based on this pattern
In one X messageSeverino stated that Bitcoin price is happy to return to sub-wave 3/4 of wave 3/4 of its momentum. The analyst indicated this on this basis BTC could crash to as low as $42,000 on wave C of this downward move. His accompanying chart showed that this drop could happen sometime early next year.
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This bearish Bitcoin price prediction comes amid BTC’s recovery above $90,000 after the end of quantitative tightening (QT) by the US Federal Reserve. The flagship crypto has also rebounded amid optimism of another rate cut at this month’s FOMC meeting. CME FedWatch data shows that there is almost a 90% chance that the Fed will cut rates again this month.
However, despite these macro positive numbers for the Bitcoin price, analysts such as Tony Severino have suggested that BTC is in a dire situation bear market and is likely to show a downward trend in the coming months. In one X messagehe highlighted BTC’s monthly chart, suggesting it showed a subtle volume breakout that confirmed a “not-so-subtle” trendline breakdown.
Meanwhile, market technician JT described statements that the QT end is bullish for the Bitcoin price as being a ‘misconception’. He alluded to the possibility of the Bank of Japan (BOJ) raising rates this month as one of the stressors on liquidity beyond QT.
Peter Brandt predicts a drop to mid $40k
In one X messageveteran trader and analyst Peter Brandt predicted that the Bitcoin price could fall to the mid-$40,000s. He stated that the upper limit of the lower green zone starts below $70,000 and the lower support limit is in the mid-$40,000s. Remarkably, Brandt had predicted it earlier that BTC could fall to around $50,000 before rising to around $200,000 in the next bull market.
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The experienced analyst noted that there have been five major bull market cycles for the Bitcoin price since its inception. He further stated that in total previous cyclesis the violation of the dominant parabolic advance without exception followed by a correction of more than 75%. As such, he expects BTC to undergo another significant correction in this cycle, potentially falling below $50,000.
At the time of writing, the Bitcoin price is trading around $93,000, up almost 7% in the last 24 hours. facts from CoinMarketCap.
Featured image of Pngtree, chart from Tradingview.com