Analyst Warns Bitcoin (BTC) Price Could Drop Another 20%
06 August 2024 - 4:00PM
NEWSBTC
Bitcoin (BTC) saw a 20% price drop over the weekend, briefly losing
the $50,000 support level. The rest of the market followed the
flagship cryptocurrency, crashing around 23% in the last three
days. Since then, the crypto market has momentarily reclaimed some
key levels, but analysts fear the bleeding isn’t over yet. Is The
Bitcoin Bottom In? Following Bitcoin’s drop below $50,000, crypto
analyst Altcoin Sherpa shared his thoughts on BTC’s performance. To
him, the flagship cryptocurrency hit one of its possible bottoms on
Monday morning after reaching the $49,000 support zone. Related
Reading: Bitcoin RSI Goes Bearish For The First Time Since August
2023, Will It Crash Below $40,000? The massive drop to the
$49,000-$50,000 area, which represented a 17% fall in less than 24
hours, could be the bottom, said Sherpa. However, he believes lower
support levels will likely be tested in the coming days. Per the
post, the analyst won’t be “sitting comfortably” until BTC prices
test the $40,000-$47,000 area, as these levels “got a lot more
support.” Bitcoin’s current price action reminds the analyst of its
performance during the 2021 rally. At the time, BTC saw the January
consolidation area “be the key focal point for the temporary
bottom” during that summer. The summer 2021 violent dump, which
resembles the current crash, was followed by a bottom that “formed
over several months.” Based on this, Sherpa believes that the
January 2024 price range could be the key area to watch. He also
reaffirmed his previous forecast for the cycle, which asserted that
the market would resume its run during Q4 2024 and continue
throughout Q1 2025: What’s going to happen after this dump is
anyone’s guess; my personal one is that we chop around for the next
several months after this dump is over and then have a great Q4-Q1
of 2025. Survive until then. BTC Sees The Cycle’s Deepest Retrace
Yet According to Rekt Capital, the recent Bitcoin crash officially
became the deepest retrace of the cycle. BTC saw 23% and 25% drops
in May and July, respectively, which have now been surpassed by the
29% drop registered in the last two weeks. Trader and market
analyst Crypto Bullet also weighed in on the current BTC
performance. To the analyst, Bitcoin’s chart is reminiscent of the
COVID-19 crash in 2020, displaying a similar Descending Broadening
Wedge pattern. Per the post, the largest cryptocurrency by market
capitalization saw a similar dump in March 2020, followed by a
price recovery and breakout from the pattern in the coming months.
Similarly, BTC tested the lower support levels within the pattern
on Monday morning, which could suggest the price is poised to
recover soon. Nonetheless, Crypto Jelle believes that Bitcoin’s
price is testing key levels on this weekly opening. To him, BTC is
“still holding inside the descending broadening wedge and holding
sensible area of support.” Due to this performance, Jelle considers
that “the higher the day end, the better.” Related Reading: MATIC:
Market Nosedive Leads To 30% Wipe In Value Lastly, renowned analyst
Ali Martinez stated that Bitcoin must reclaim the $54,000 support
level to prevent dropping to the $40,000 mark. Based on BTC’s MVRV
Pricing Bands, the analyst believes the flagship cryptocurrency
could soon retest the $67,000 resistance level if it holds the
current price. As of this writing, BTC has recovered 8.8% from its
fall, trading at $54,320. Featured Image from Unsplash.com, Chart
from TradingView.com
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