Analyst Warns Bitcoin (BTC) Price Could Drop One other 20%

Bitcoin (BTC) saw a 20% price drop over the weekend, briefly losing the $50,000 support level. The remainder of the market followed the flagship cryptocurrency, crashing around 23% within the last three days. Since then, the crypto market has momentarily reclaimed some key levels, but analysts fear the bleeding isn’t over yet.

Is The Bitcoin Bottom In?

Following Bitcoin’s drop below $50,000, crypto analyst Altcoin Sherpa shared his thoughts on BTC’s performance. To him, the flagship cryptocurrency hit certainly one of its possible bottoms on Monday morning after reaching the $49,000 support zone.

Related Reading: Bitcoin RSI Goes Bearish For The First Time Since August 2023, Will It Crash Below $40,000?

The huge drop to the $49,000-$50,000 area, which represented a 17% fall in lower than 24 hours, may very well be the underside, said Sherpa. Nevertheless, he believes lower support levels will likely be tested in the approaching days.

BTC’s support areas. Source: Altcoin Sherpa on X

Per the post, the analyst won’t be “sitting comfortably” until BTC prices test the $40,000-$47,000 area, as these levels “got quite a bit more support.” Bitcoin’s current price motion reminds the analyst of its performance throughout the 2021 rally.

On the time, BTC saw the January consolidation area “be the important thing focus for the temporary bottom” during that summer. The summer 2021 violent dump, which resembles the present crash, was followed by a bottom that “formed over several months.”

Based on this, Sherpa believes that the January 2024 price range may very well be the important thing area to observe. He also reaffirmed his previous forecast for the cycle, which asserted that the market would resume its run during Q4 2024 and proceed throughout Q1 2025:

What’s going to occur after this dump is anyone’s guess; my personal one is that we chop around for the following several months after this dump is over after which have an awesome Q4-Q1 of 2025. Survive until then.

BTC Sees The Cycle’s Deepest Retrace Yet

In line with Rekt Capital, the recent Bitcoin crash officially became the deepest retrace of the cycle. BTC saw 23% and 25% drops in May and July, respectively, which have now been surpassed by the 29% drop registered within the last two weeks.

Trader and market analyst Crypto Bullet also weighed in on the present BTC performance. To the analyst, Bitcoin’s chart is harking back to the COVID-19 crash in 2020, displaying an analogous Descending Broadening Wedge pattern.

Per the post, the most important cryptocurrency by market capitalization saw an analogous dump in March 2020, followed by a price recovery and breakout from the pattern in the approaching months. Similarly, BTC tested the lower support levels inside the pattern on Monday morning, which could suggest the worth is poised to recuperate soon.

Nonetheless, Crypto Jelle believes that Bitcoin’s price is testing key levels on this weekly opening. To him, BTC is “still holding contained in the descending broadening wedge and holding sensible area of support.” Resulting from this performance, Jelle considers that “the upper the day end, the higher.”

BTC displays a multi-month descending broadening wedge pattern. Source: Crypto Jelle on X