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Cryptocurrency analyst just confirmed upcoming Bitcoin (BTC) crashindicating a bearish descending triangle formation on the cryptocurrency’s price chart. With Bitcoin price holding firmly above $60,000, the key question now is how low this projected decline is.
Analyst confirms upcoming bitcoin crash
TradingView cryptocurrency analyst Alan Santana has published report warning about potential threats Current Bitcoin Price Behaviorindicating a possible price crash caused by the formation of a recent descending triangle. Santana noted that currently bitcoin price is trading above $60,000, down about 20% from its March 2024 all-time high (ATH) of over $73,000.
The analyst hypothesized that if Bitcoin would be trading at a lower price level of $37,000, which would be a 50% drop from the March ATH. In that case, the price would be seen as a powerful correction all-time highs.
Santana also revealed that a $37,000 turnover would be good for Bitcoinespecially before a major political event such as the upcoming United States (US) presidential election in November. This means that when trading below $40,000 or $37,000, Bitcoin will have to significantly recovery to recent heights.
However, since BTC is currently trading at $63,635, which is close to a critical resistance level, it indicates powerful momentum. Therefore, if an unexpected event or market shock occurs, it could potentially trigger huge drop in cryptocurrency prices.
Moreover, Bitcoin has created descending triangle pattern, which the analyst has labeled as a bearish signal. He revealed that on the monthly chart of the cryptocurrency, this pattern has broken downwards, finally confirming impending price crash.
As a result, Santana warned that investors should expect bitcoin crashciting the bearish cryptocurrency’s prolonged sideways movement over the past six months. He further revealed that BTC had been printing lower highs in the compact and medium term for over six months, emphasizing that the lower highs were a sign of a bearish trend.
Based on the cryptocurrency market behavior, the descending triangle pattern, and the current price, Santana predicted that Bitcoin could fall below $49,000He noted that the next Fibonacci retracement level below $49,000 is in the $40,000 to $43,000 range, meaning the primary target of this bearish forecast could be even lower.
BTC uptrend is based on breaking through $70,000
Highlighting the possibility of Bitcoin falling below $49,000, Santana also revealed that Bitcoin could witness a major uptrend if its price can successfully break above the $70,000 level. He revealed that powerful confirmation above this price is necessary to consider BTC bullish in this cycle.
Specifically, if the cryptocurrency reaches a close above $70,000 in one or two weeks or months, it could trigger bullish return for the market. However, while Bitcoin is rising and maintaining a price above $60,000, the market is only seeing over-leveraged traders liquidating and altcoins rising.
Featured image created with Dall.E, chart from Tradingview.com