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A crypto analyst recently confirmed the The upcoming Bitcoin (BTC) crashpointing to the formation of a descending triangle formation on the cryptocurrency price chart. With the price of Bitcoin holding strong above the $60,000 mark, the important question now is how low is this expected drop.
Analyst Confirms Incoming Bitcoin Crash
TradingView crypto analyst, Alan Santana published a report warning of potential dangers to The current price of Bitcoin behaviorindicating a potential price crash driven by the formation of a new descending triangle. Santana noted that currently, the Bitcoin price it is trading above $60,000, which is about 20% lower than its March 2024 All-Time High (ATH) of more than $73,000.
The analyst thought that if Bitcoin were trading at a low of $37,000, this would represent a 50% decline from its March ATH. In such a case, this price will be seen as a strong correction coming all time highs.
Santana also revealed that trading at $37,000 would be profitable for Bitcoinespecially before a major political event such as the upcoming United States (US) Presidential election in November. This means that by trading below $40,000 or $37,000, Bitcoin will be due for a large profit. restore to new levels.
However, since BTC is currently trading at $63,635, a price mark close to the critical resistance level, this indicates strong momentum. Thus, in the event of an unexpected event or market shock, it may trigger a a big drop in the price of cryptocurrency.
In addition, Bitcoin has established ia descending triangle pattern, which the analyst marked as a bearish signal. He revealed that in the monthly chart of the cryptocurrency, this pattern has been reversed, finally confirming the the coming price crash.
Because of this, Santana has warned that investors should expect a Bitcoin crashcites the cryptocurrency’s long-term biased sideways movement over the past six months. He also disclosed that BTC has been printing low highs in the short term and in the medium term of more than six months, highlighting that the low highs were an indicator of a bearish trend.
Based on the behavior of the cryptocurrency market, the descending triangle pattern and the current price, Santana predicted that Bitcoin could sink below $49,000. He noted that the next Fibonacci retracement level below $49,000 is around $40,000 to $43,000, which means that the main target of this bearish forecast may be even lower.
BTC Uptrend Hinges On $70,000 Breakout
While emphasizing the possibility of Bitcoin crashing below $49,000, Santana also revealed that. Bitcoin could see a big rise if its price can successfully break above the $70,000 mark. He pointed out that a strong confirmation above this price is needed to consider BTC bullish in this cycle.
Specifically, if a cryptocurrency can achieve one or two weekly or monthly closes above $70,000, it may result in bullish turn for the market. However, while Bitcoin is rising and maintaining a value above $60,000, the market only sees traders who use excessive power being eliminated and the growth of altcoins.
The featured image was created with Dall.E, a chart from Tradingview.com