Bitcoin has fallen back to $56,000 after a brief rally sparked by CPI data released Thursday showing inflation rates came in at 3%, lower than expected. This bearish trend has continued despite desperate attempts by bulls to keep the price high. Even then, one cryptocurrency analyst doesn’t believe the decline is over and expects the drop to continue.
Bitcoin Airdrop Far From Over
Cryptocurrency analyst at TradingView, who goes by the pseudonym “Luca VIP”, expressed bearish trends for Bitcoin price in the future. In the analysis, the crypto analyst indicates that the reason for the current fluctuations in Bitcoin price is the fact that after pumping, it reached resistance at $ 59,000.
As a result of this rejection, the cryptocurrency is currently in a consolidation phase that threatens to continue. Furthermore, BTC price continues to show sideways performance even after Thursday’s rally, suggesting that bears still have a firm grip on the price.
Furthermore, the crypto analyst maps out a possible downtrend from here, pegging it at $56,000 until the decline ends. However, what matters is what happens once Bitcoin price reaches this expected support level.
Luca explains that despite the decline, BTC price has formed a W pattern, which is historically a bullish pattern. In this case, a bullish reversal is expected, which could trigger a retest of the $59,000 level. If the retest is successful, the crypto analyst will once again place Bitcoin price above $60,000.
“BTCUSDT could retest the resistance zone at $59,000. A successful break above this level could push the price towards higher targets, potentially around $60,000 or higher,” the crypto analyst said.
Is it time to buy BTC?
While the market is still reeling from the bitcoin price drop, some cryptocurrency analysts believe the timing is good. Another pseudonymous analyst who goes by “RLinda” on TradingView common this feeling lately.
According to the analyst, a drop to $57,000 is a good opportunity to take a position in Bitcoin, especially since the market has been gripped by fear due to continuous sell-offs. Apparently, BTC price is heading towards renewing local highs.
RLinda’s stance is supported by the fact that the Crypto Fear & Greed Index has fallen to Extreme Fear, which has historically been the best time to position yourself for cryptocurrencies. If historical trends are anything to go by, the price could trade sideways for a while before eventually finding forceful support and bouncing back.
Featured image created with Dall.E, chart from Tradingview.com
