Bitcoin Descending Triangle Formation Says A Crash Is Coming, How Low Can It Go?
27 September 2024 - 4:00AM
NEWSBTC
A crypto analyst has just confirmed an impending Bitcoin (BTC)
crash, pointing to the formation of a bearish descending triangle
formation on the cryptocurrency’s price chart. With Bitcoin’s price
holding strong above the $60,000 mark, the key question now is how
low this anticipated downturn is. Analyst Confirms Incoming
Bitcoin Crash TradingView crypto analyst, Alan Santana has
published a report warning of potential risks in Bitcoin’s current
price behavior, pointing to a possible price crash driven by the
formation of a new descending triangle. Santana noted that
currently, the price of Bitcoin is trading above $60,000, which is
about 20% lower than its March 2024 All-Time High (ATH) of more
than $73,000. The analyst hypothesized that if Bitcoin were
trading at a lower price level of $37,000, this would represent a
50% decline from its March ATH. In such a case, this price would be
seen as a strong correction from all-time highs. Santana also
revealed that trading at $37,000 would be advantageous for Bitcoin,
especially before a major political event like the upcoming United
States (US) Presidential elections in November. This means that by
trading below $40,000 or $37,000, Bitcoin would be due for a
significant recovery to new highs. However, since BTC is
currently trading at $63,635, a price mark close to a critical
resistance level, this indicates a strong momentum. As such, if an
unexpected event or market shakeout occurs, it could potentially
trigger a massive price decline for the cryptocurrency.
Moreover, Bitcoin has formed a descending triangle pattern, which
the analyst has flagged as a bearish signal. He revealed that on
the cryptocurrency’s monthly chart, this pattern broke to the
downside, ultimately confirming an impending price crash. As
a result, Santana has warned that investors should expect a Bitcoin
crash, citing the cryptocurrency’s prolonged sideways movement with
a bearish bias over the past six months. He further disclosed that
BTC has been printing lower highs in the short-term and mid-term
for more than six months, highlighting that lower highs were an
indication of a bearish trend. Based on the cryptocurrency’s
market behavior, descending triangle pattern and current price,
Santana has predicted that Bitcoin could dip below $49,000. He
noted that the next Fibonacci retracement level below $49,000 sits
around $40,000 to $43,000, meaning the main target for this bearish
forecast could be even lower. BTC Uptrend Hinges On $70,000
Breakout While emphasizing the potential for Bitcoin to crash below
$49,000, Santana also disclosed that Bitcoin could witness a major
uptrend if its price can successfully break above the $70,000 mark.
He revealed that a strong confirmation above this price is
necessary to consider BTC bullish this cycle. Specifically,
if the cryptocurrency can achieve a one or two weekly or monthly
close above $70,000, it could spark a bullish turnaround for the
market. However, while Bitcoin is rising and maintaining a price
above $60,000, the market is only seeing over-leveraged traders
being liquidated and the growth of altcoins. Featured image
created with Dall.E, chart from Tradingview.com
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