Bitcoin’s price stalled after hitting $71,000, floating in essentially a limbo of indecision. Naturally, such periods precede a massive move, but what direction the price may go is a completely different matter. In an attempt to determine where Bitcoin is headed, cryptocurrency analyst Alan Santana analyzed Bitcoin’s chart and proposed a possible direction.

Bitcoin may head lower

Alan Santana analysis analyzes Bitcoin’s performance over the past year to determine where the price may be headed. As the analyst notes, the Bitcoin price has been in an upward phase for over a year, or more precisely, 479 days, from November 2022 to March 2024.

Naturally, if booms like this continue for so long, a acute decline is expected to occur as investors start selling off their holdings. The problem is that bearish waves follow bullish waves moving faster, and with a bullish wave lasting 16 months, the bear wave is expected to resolve quickly. As a cryptocurrency analyst points out, it is often 2x or 2.5x faster than the bullish wave.

Explaining the reason, Alan Santana said that: “When the market is rising, people buy slowly but surely, building a position and enjoying the market and profits while everything is rising. It doesn’t happen when the market changes.”

He further explains that “When a correction occurs, people either prepare in advance or sell when they realize that the upside potential has been exhausted. So instead of “building a position” when most players realize that the wave is over, they tend to close out the entire position, which can really accelerate the move down and therefore the move down is faster than when prices are rising.

Given this, the cryptocurrency analyst expects a bear wave to occur with a acute crash for Bitcoin. This would consequently impact the rest of the market, which is known to suffer more than Bitcoin.

Where does the BTC price go from here?

He believes that Bitcoin’s price could drop by more than 30% from its current price of $71,000 during the bearish wave expected by the crypto analyst. The chart shows a possible initial crash to $60,000 and the trend is expected to continue thereafter.

At the heart of this crash is the $47,943 level, which is likely where the analyst expects the crash to end. If this happens, the BTC price could drop by around 33%, which could be extremely bearish for the market.

Featured image created with Dall.E, chart from Tradingview.com