After weeks of consolidation, the crypto space was eagerly waiting for the bulls to grab the market but the cryptocurrency market failed to do so as the world’s first cryptocurrency Bitcoin drastically dropped below $40,000.
This has cost all other cryptocurrencies to tumble as much as 8% today, Monday morning. Also, Bitcoin has slipped down a key support level today and the currency’s losses appear to be entering the pattern that signals a deeper bottom
Though the flagship currency is set to see some relief from its selling pressure in the near term, analysts predict Bitcoin is likely to sink further, possibly even below $35,000.
Bitcoin Enters Impulsive Wave Drop
SmartContracter, a Crypto analyst claims that BTC price looks likely to be entering an impulsive five-wave decline. However, the analysts still expect the token to undergo a reasonable bounce this week where the price will reach as high as $44,000 before sliding to new lows.
According to the analyst, the king currency’s recent losses would grab another gesture of buyers and this will definitely fuel its prices. On the flip side, the technical indicators are leaning widely towards Bitcoin’s another set of losses.
Also in two months with Bitcoin expected to bounce sharp selling pressure is set to follow and this event will drag the token’s prices to further lows.
Bitcoin Price Action
Over the past few days, Bitcoin is having a tough time dealing with a bearish roar, and this price action has suggested a new bottom for the flagship currency around $40,000. But with today’s downfall, the traders are looking out for the next bottom.
In January, Bitcoin’s price bottomed to as low as $33,000 due to the events like rising inflation and a hawkish Fed and marked this level as the lowest of the year.
Meanwhile, a popular indicator of a possible bottom, realized price indicates that the world’s largest crypto by market cap could tumble as far as $25,000, the lowest mark of 2020.
Was this writing helpful?
Source: https://coinpedia.org/bitcoin/bitcoin-price-pattern-signals-deeper-fall/