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Despite initial expectations of a gentle price increase and a sturdy bull run this 12 months, Bitcoin (BTC) has suffered severe declines, pushing its price below the $60,000 threshold. On account of the cryptocurrency’s prolonged bearish performance, a crypto analyst has warned that Bitcoin could decline even further, predicting a potential crash below $40,000. Nonetheless, the analyst also provides a silver lining to his bearish outlook, anticipating a significant rebound after the decline.
Bitcoin May Be Headed For A $40,000 Crash
A crypto analyst referred to as ‘Magog PhD’ took to X (formerly Twitter) on September 1 to share a novel encounter he had with a supposed Bitcoin billionaire. The analyst recounted an unusual experience from his summer job as a waiter in a Latest York restaurant, where a Bitcoin billionaire slid a chunk of paper across the table in the shape of a tip.
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Upon examination the paper revealed a chart forecasting Bitcoin’s future price trajectory. The chart illustrated that Bitcoin’s price was expected to crash below $32,000, marking a large decline to recent lows. Over the past few months the worth of Bitcoin has experienced strong volatility and widespread liquidations which have led to severe price decline.
Source: X
At one stage, the cryptocurrency tumbled by over 20%, plunging below $50,000 before rebounding to just about $60,000. The demand for Spot Bitcoin Exchange Traded Funds (ETFs) have also seen a pointy decline, likely playing a task in Bitcoin’s recent downward trend.
Although the Bitcoin price chart projects that the cryptocurrency will crash below $32,000, it also illustrated that Bitcoin would potentially witness a significant breakout above $76,000 following the decline. Similar bullish sentiment has been shared by fellow crypto analysts available in the market.
In keeping with technical analyst and Bitcoin trader, ‘Titan of Crypto,’ Bitcoin is currently forming a novel technical pattern called the “Cup and Handle pattern.” Often recognized as a bullish continuation signal, the Cup and Handle is a technical chart pattern that highlights a period of consolidation after an uptrend, followed by a slight pull back and an eventual breakout to the upside.
Source: X
Based on this technical pattern, the analyst believes that Bitcoin is prone to break out soon, reaching a possible price goal of $110,000. He disclosed that this bullish price movement could occur within the final quarter of the 12 months, highlighting that the cryptocurrency’s rebound is “going to be epic.”
BTC Achieves Historic Weekly Golden Cross
Bitcoin could have reached a historic milestone, as crypto analyst Jelle has identified the formation of a weekly Golden Cross on the Bitcoin price chart for the primary time ever.
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Source: X
The golden cross occurs when a short-term Moving Average (MA) crosses above a long-term MA. This week, Bitcoin’s 100-week MA surpassed the 200-week MA, highlighting a powerful bullish signal that might potentially trigger a large bull run for the cryptocurrency.
BTC price struggling below $59,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com