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A cryptocurrency analyst predicts a decline for Bitcoin from here on out, but what happens next?
THE Bitcoin Price fell back towards the $56,000 level after a brief pump-up triggered by the release of Thursday’s CPI data, showing that the inflation rate has reached 3%lower than expected. This downtrend has continued despite the bulls’ desperate attempts to keep the price up. Even so, one cryptocurrency analyst doesn’t believe the decline is over and expects the fall to continue from here.
Bitcoin’s Crash Is Far From Over
A cryptocurrency analyst on the website TradingView, who uses the pseudonym “Luca VIP,” has expressed bearish trends for the price of Bitcoin in the future. In the analysis, the cryptocurrency analyst points out that the reason for the current fluctuation in the price of Bitcoin is the fact that it reached the resistance at $59,000 after the pump.
As a result of this rejection, the cryptocurrency is currently in a consolidation phase, which threatens to continue from here. Furthermore, the price of BTC continues to show a sideways trend, even after Thursday’s surge, which suggests that the bears are still firmly in control of the price.
Furthermore, the cryptocurrency analyst draws a possible downtrend from here, setting it at a low of $56,000 until the downturn is over. However, what is important is what happens after the price of Bitcoin reaches this expected support level.
Luca explains that despite the decline, the price of BTC formed a W pattern, which is historically a bullish pattern. In this case, a bullish reversal It is expected that this could trigger a retest of the $59,000 level. If the retest is successful, then the cryptocurrency analyst will put the price of Bitcoin above $60,000 again.
“BTCUSDT could retest the resistance zone at $59,000. A successful breakout above this level could push the price towards higher targets, potentially around $60,000 or above,” the cryptocurrency analyst said.
Is it time to buy BTC?
While the market is still struggling the drop in the price of BitcoinSome cryptocurrency analysts believe this is a good time. Another pseudonymous analyst who goes by the name ‘RLinda’ on the TradingView website shared this feeling recently.
According to the analyst, the fall to $57,000 represents a good opportunity to get into position for Bitcoin, especially since the market has been thrown into fear by the continuous selling. Apparently, the price of BTC is heading towards a renewal of local highs.
RLinda’s position is strengthened by the fact that the Cryptocurrency Fear and Greed Index has fallen into Extreme Fear, which has historically been the best time to be in cryptocurrencies. If historical trends are anything to go by, then the price could trade sideways for a while before finally finding strong support and seeing a bounce.
Featured image created with Dall.E, chart from Tradingview.com