A cryptocurrency trading expert has warned of a troubling outlook for the next price movement of Bitcoin (BTC) and altcoins, even as investors anticipate potential new highs.
In a TradingView post on August 25, Alan Santana described a grim scenario unfolding in the coming weeks, supported by a detailed analysis suggesting the market is teetering on the edge of what could be the most significant crash of 2024.
According to Santana, the cryptocurrency market is on the brink of reaching the climax of a correction that has been building throughout the year. He ominously declared that “trouble is approaching the market,” indicating that Bitcoin’s capitulation event is inevitable and will have a cascading effect on the entire crypto market.
He emphasized that money is rapidly being withdrawn from altcoins, many of which had shown resilience despite Bitcoin’s fluctuations.
“Trouble is approaching the market.<…> Many altcoins were looking good and remaining strong even while Bitcoin moved up, or down, but now everything is starting to slow down. This is the most revealing signal of all,” the expert noted.
Key levels to watch
The analysis indicated that the market has been descending, and Bitcoin has struggled to break through, with the total market cap already in decline. Santana highlighted specific support zones that he expects will be tested in the coming weeks.
The first key support zone lies around the $1.65 trillion level, a critical area that could determine the market’s short-term fate. If this support fails, the market could plunge to the next central support zone, around $1.2 trillion.
Phases of upcoming market correction
At the same time, Santana laid out a vivid six-day scenario that he believes will characterize the upcoming market turmoil. He predicted the market would initially be eerily calm, with little action, creating a false sense of security.
As the crash begins, most market participants will remain in denial, clinging to hopes of a bull market or new all-time highs for Bitcoin. However, in this phase, billions of dollars will be instantly liquidated.
Panic will then set in as prices plummet, with fear gripping the market as traders scramble to sell their assets, even as Bitcoin dips. As Bitcoin hits a new low, the market will be consumed by uncertainty and speculation about how far it will fall, with some fearing a drop to $10,000.
After the initial shock subsides, the market will begin a slow recovery. However, Santana warned that many will lose hope and sell at the bottom, only to miss out on the eventual rebound.
Finally, a strong recovery will take hold, with Bitcoin poised for long-term growth, but the damage will have been done, leaving many investors battered by the volatility.
Additionally, Santana predicted this entire sequence could play out over one to three weeks, making it one of the most dramatic events in cryptocurrency history. He also posed a thought-provoking question to his audience: What will be the catalyst for this crash, and what kind of headlines will dominate the news?
Impact on altcoins
Turning his attention to altcoins, Santana outlined their likely reactions to the impending crash. Some altcoins, he believes, have already hit their bottom. While they will see a dip during the crash, it will be relatively minor, followed by a swift recovery.
However, the largest and most high-profile altcoins are in for a rough ride. Still trading at elevated levels, they will endure a painful correction and take longer to bounce back.
In the meantime, Bitcoin is seeking to sustain its gain above the $64,000 mark. By press time, BTC was trading at $64,128, gaining 7% in the past seven days.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/expert-outlines-phases-of-the-biggest-crash-for-bitcoin-and-altcoins-as-trouble-is-approaching/