The Bitcoin price has crashed back toward the $56,000 level after a temporary pump triggered by the CPI data release on Thursday, showing that inflation rates got here out at 3%, lower than expected. This bearish trend has continued despite desperate attempts from bulls to maintain the value up. Even then, one crypto analyst doesn’t consider that the decline is completed and expects the autumn to proceed from here.
Bitcoin Dump Far From Over
A crypto analyst on the TradingView website, who goes by the pseudonym ‘Luca VIP,’ has expressed bearish tendencies for the Bitcoin price going forward. Within the evaluation, the crypto analyst points out that the rationale for the present Bitcoin price fluctuation is the incontrovertible fact that it has hit resistance at $59,000 following the pump.
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Consequently of this rejection, the cryptocurrency is currently in a consolidation phase, which threatens to proceed from here. Moreover, the BTC price continues to be showing sideways performance, even after the Thursday surge, which suggests that bears are still firmly in command of the value.
Moreover, the crypto analyst maps out a possible decline trend from here, putting it as little as $56,000 until the decline is completed. Nonetheless, what’s vital is what happens after the Bitcoin price hits this expected support level.
Luca explains that despite the decline, the BTC price has formed a W pattern, which is historically a bullish pattern. On this case, a bullish reversal is anticipated that would trigger a retest of the $59,000 level. If the retest is successful, then the crypto analyst puts the Bitcoin price above $60,000 once more.
“BTCUSDT may retest the resistance zone at $59,000. A successful breakout above this level could push the value to higher targets, potentially around $60,000 or higher,” the crypto analyst said.
Is It Time To Buy BTC?
While the market continues to be reeling from the Bitcoin price dip, some crypto analysts consider that that is a great time to time. One other pseudonymous analyst who goes by ‘RLinda’ on the TradingView website shared this sentiment recently.
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In keeping with the analyst, the autumn to $57,000 presents a great opportunity to get into position for Bitcoin, especially because the market has been plunged into fear by the continual sell-offs. Apparently, the BTC price is headed toward a renewal of local highs.
RLinda’s stance is buttressed by the incontrovertible fact that the Crypto Fear & Greed Index has fallen into Extreme Fear, which has historically been the very best time to get positioned for cryptocurrencies. If historical trends are anything to go by, then the value could trade sideways for some time before finally finding strong support and seeing a bounce.
BTC price recovers above $57,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com