Analyst Confirms Incoming Bitcoin Crash
Renowned TradingView crypto analyst, Alan Santana, has recently issued a warning concerning Bitcoin’s current price behavior. According to Santana, Bitcoin is exhibiting signs of a potential price crash, driven by the formation of a bearish descending triangle on its price chart. As Bitcoin continues to hover above the $60,000 mark, investors are keenly watching to see just how deep this anticipated downturn might go.
Santana’s analysis reveals that Bitcoin’s current trading price of approximately $63,635 is about 20% lower than its March 2024 All-Time High (ATH) of over $73,000. He hypothesizes that if Bitcoin were to drop to a price level of $37,000, it would signify a significant 50% correction from its ATH. Such a price correction would not only be a strong adjustment from the all-time highs but could also set the stage for a robust recovery.
Potential for Recovery Amid Political Events
Interestingly, Santana points out that a trading price of $37,000 could be beneficial for Bitcoin, especially in the context of major political events like the upcoming United States Presidential elections in November. A price dip below $40,000 or $37,000 could potentially pave the way for Bitcoin to rebound to new highs, presenting a compelling opportunity for investors.
However, Santana emphasizes that Bitcoin’s current trading price of $63,635 is precariously close to a critical resistance level. This indicates a strong momentum, but it also means that any unexpected market shakeout or event could trigger a significant price decline for the cryptocurrency.
Descending Triangle Pattern: A Bearish Signal
One of the key indicators of the impending crash, according to Santana, is the formation of a descending triangle pattern on Bitcoin’s monthly chart. This pattern, which has broken to the downside, serves as a bearish signal and confirms the likelihood of a price crash. Santana warns that investors should brace themselves for this potential downturn, given Bitcoin’s prolonged sideways movement with a bearish bias over the past six months.
Highlighting the trend of lower highs in both the short-term and mid-term, Santana indicates that this behavior is a clear sign of a bearish trend. Based on the current market behavior, the descending triangle pattern, and Bitcoin’s current price, Santana predicts that Bitcoin could potentially dip below $49,000. He notes that the next Fibonacci retracement level below $49,000 is around $40,000 to $43,000, suggesting that the primary target for this bearish forecast could be even lower.
BTC Uptrend Hinges On $70,000 Breakout
Despite the bearish outlook, Santana also highlights the possibility of a major uptrend if Bitcoin can break above the $70,000 mark. He asserts that a strong confirmation above this price level is necessary to consider Bitcoin bullish in the current cycle. Specifically, achieving a one or two weekly or monthly close above $70,000 could ignite a bullish turnaround for the market.
However, while Bitcoin continues to trade above $60,000, the market is primarily witnessing the liquidation of over-leveraged traders and the growth of altcoins. This dynamic underscores the volatility and uncertainty that currently characterizes the cryptocurrency market.
In summary, while the potential for a Bitcoin crash looms large, the possibility of an uptrend remains if certain price levels are breached. Investors should stay vigilant and closely monitor these key levels as the market evolves.
