Bitcoin
Cryptocurrency analyst predicts Bitcoin will fall from now on, but what happens next?
O Bitcoin Price fell back to the $56,000 level after a brief rally triggered by the release of CPI data on Thursday showing that inflation rates reached 3%lower than expected. This downtrend has continued despite the bulls’ desperate attempts to keep the price high. Still, one crypto analyst doesn’t believe the decline is over and expects the decline to continue from here.
Bitcoin Dump Far From Over
A cryptocurrency analyst at TradingView, known by the pseudonym ‘Luca VIP’, expressed bearish trends for Bitcoin price going forward. In the analysis, the crypto analyst points out that the reason for the current fluctuation in Bitcoin price is the fact that it hit the resistance at $59,000 after the pump.
As a result of this rejection, the cryptocurrency is currently in a consolidation phase, which threatens to continue from here. Furthermore, the price of BTC is still showing sideways performance even after Thursday’s surge, which suggests that bears are still firmly in control of the price.
Furthermore, the crypto analyst maps out a possible downward trend from here, placing it at $56,000 until the decline is made. However, what is important is what happens after the Bitcoin price hits this expected support level.
Luca explains that despite the decline, the price of BTC formed a W pattern, which is historically a bullish pattern. In this case, a bullish reversal This is expected to trigger a retest of the $59,000 level. If the retest is successful, the crypto analyst puts Bitcoin’s price above $60,000 once again.
“BTCUSDT could retest the resistance zone at $59,000. A successful break above this level could push the price towards higher targets, potentially around $60,000 or higher,” the crypto analyst said.
Is it time to buy BTC?
While the market is still recovering the fall in the price of BitcoinSome crypto analysts believe this is a good time. Another pseudonymous analyst who goes by ‘RLinda’ on TradingView shared this feeling recently.
According to the analyst, the drop to $57,000 presents a good opportunity to enter a position for Bitcoin, especially since the market has been plunged into fear due to the ongoing sell-off. It appears that the BTC price is heading towards a renewal of local highs.
RLinda’s position is reinforced by the fact that Cryptocurrency Fear and Greed Index has fallen into Extreme Fear, which has historically been the best time to position for cryptocurrencies. If historical trends are anything to go by, then the price could trade sideways for a while before finally finding strong support and seeing a bounce.
Featured image created with Dall.E, chart from Tradingview.com