Bitcoin has stagnated in price after hitting the $71,000 levelIndecisiveness is what keeps the market in limbo. Naturally, these periods act as precursors for a major move. But what direction might the price be heading in? To pinpoint the direction of price movement, it is important to look at periods like these. where Bitcoin is goingAlan Santana, a crypto analyst has analysed the Bitcoin chart to determine a potential direction.
Bitcoin could be headed down
Alan Santana’s analysis The analyst looks at Bitcoin’s performance in the last year to predict where it might go. The analyst notes that the Bitcoin price Since November 2022, the market has experienced a strong bullish trend lasting 479 days.
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When bullish waves last this long, investors will begin to reduce their stock holdings. Problem is, bearish waves that follow a bullish trend move much faster. bullish wave After 16 months of a bearish trend, it is predicted that the wave will end quickly. The crypto analyst says that the bearish wave is usually 2x or 2.5x more rapid than the bullish one.
Alan Santana revealed that he explained this by saying: “When the market is rising, people are buying, slowly but surely, building up a position and enjoying the market and profits as everything grows. This is not the case when the market turns.”
Then he goes on to explain that “When a correction happens, people either prepare in advance or sell when they realize that the upward potential has been exhausted. So instead of ‘building a position,’ when the majority of players realize that the wave is over they tend to close the entire position, and thus, the down move can really speed up, and that’s why the down move is faster than when prices grow.”
A crypto analyst has predicted that Bitcoin will experience a severe crash as a result of the current bearish trend. By extension, this would also affect the remainder of the market which has been known to be more affected than Bitcoin.
How will the BTC rate develop from here?
The crypto analyst believes that in the wave of bearishness expected, the Bitcoin price could crash More than 30% more from the current price of $71,000. This chart indicates that the price could drop initially to around $60,000, but then continue to fall.
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Analysts expect the crash to finish at $47.943. This is what will happen if this happens. BTC price The market could face a 33% drop, which would be extremely bearish.
Featured Image created using Dall.E and chart from Tradingview.com
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Source: www.newsbtc.com