The short-term outlook for Bitcoin continues to look bleak as volatility increases in the mainstream crypto market. In the past few days, the digital asset has fallen as much as 11% from its all-time high, prompting public speculation about an extension. price adjustment at previous support levels.
Is Bitcoin Due for a Long Price Drawdown?
Bitcoin’s recent performance may expand significantly in the coming days. Crypto expert and creator of the Market Sniper trading bot Jesse Olsen has highlighted past patterns suggest that BTC may be on the verge of a major price pullback.
According to market experts, Bitcoin may drop as much as 30% in the next few days. Drawing parallels with cyclical trends of the past, Jesse Olsen highlights that these types of corrections usually occur over time. a significant increase.
Specifically, Olsen foresees a significant pullback as Bitcoin crosses bearish on the Moving Average Convergence Divergence (MACD) indicator. This is because The price of Bitcoin has experienced at least a 30% correction the last 3 times the MACD indicator had a bearish crossover on the 3-day chart at high levels.
As the price fluctuates, the analyst identified four important levels to watch out for, such as $92,000, $85,000, $80,000, and $70,000, if BTC’s decline increases. If BTC hits 4 of the 4 targets, this means that the crypto asset may fall to the $70,000 range.
Given that the long-term outlook for Bitcoin remains volatile, the expected correction could provide a positive reset for the market. In addition, it can provide an opportunity for new investors Buy BTC before resuming its momentum towards previous resistance levels.
Olsen’s prediction also echoes that of CoinDesk senior analyst for news outlet James Van Straten, who said. predictions the same level of pullback in the coming days. The analyst cites several support levels that are important in determining the next direction of Bitcoin.
After checking the Business Modified URPD for BTC metricVan Straten says $90,000 is the next important support point for the digital asset. Since there is no support established at this point, the limit of $75,000 may be possible if BTC loses the support point of $90,000. Therefore, going from $90,000 to $75,000 represents a 30% reversal.
BTC at a Critical Time
Despite continued market volatility, BTC form a very important trendline. Crypto Titan, market expert, he is considerate a very important trend for BTC as its next direction depends on the success from the line.
Given the importance of the development, the expert says there is no reason to raise alarm as long as it remains above this trend line. Even though the monthly candle no longer looks bearish, there is still one week left before it closes, suggesting a possible resumption.
Currently, Bitcoin is down more than 2 percent in the past day to $93,977. Its daily trading volume reflects rising optimism among investors as it grows by around 6%.
Featured image from Unsplash, chart from Tradingview.com
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