The Bitcoin price has stalled after hitting the $71,000 level, floating in what is actually a limbo of indecisiveness. Naturally, periods like these act as a predecessor to an enormous move, but what direction the worth may be headed in is one other thing entirely. In an effort to pinpoint where Bitcoin goes, crypto analyst Alan Santana has analyzed the Bitcoin chart and give you a possible direction.
Bitcoin Could Be Headed Downward
Alan Santana’s evaluation looks on the Bitcoin performance over the past 12 months in a bid to inform where the worth may be headed. Because the analyst points out, the Bitcoin price has been in a bullish wave for multiple 12 months, 479 days to be exact, since November 2022 through to March 2024.
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Naturally, when bullish waves like these last for therefore long, it is predicted that there shall be a crash downward as investors begin to dump their holdings. The issue is that bearish waves after a bullish wave move faster, and with the bullish wave lasting for 16 months, the bearish wave is predicted to unravel quickly. Because the crypto analyst points out, it is usually 2x or 2.5x faster than the bullish wave.
Explaining the rationale behind this, Alan Santana said that, “When the market is rising, persons are buying, slowly but surely, build up a position and having fun with the market and profits as all the things grows. This shouldn’t be the case when the market turns.”
He further explains that “When a correction happens, people either prepare upfront or sell once they realize that the upward potential has been exhausted. So as a substitute of ‘constructing a position,’ when nearly all of players realize that the wave is over they have an inclination to shut the whole position, and thus, the down move can really speed up, and that’s why the down move is quicker than when prices grow.”
Given this, the crypto analyst expects the bearish wave to return with a pointy crash for Bitcoin. This, by extension, would affect the remaining of the market, which is understood to suffer greater than Bitcoin.
Where Is The BTC Price Headed From Here?
Within the bearish wave expected by the crypto analyst, he believes that the Bitcoin price could crash greater than 30% from its current price of $71,000. The chart shows a possible initial crash right down to the $60,000 levels, after which he expects it to proceed further.
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At the underside of this crash is the $47,943 level, presumably where the analyst expects the crash to finish. If this does occur, then the BTC price might be taking a look at an roughly 33% crash, something that might be incredibly bearish for the market.
BTC price falls below $70,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com