Within the volatile realm of cryptocurrency, the Bitcoin price has recently experienced an unanticipated standstill. Hovering around the $71,000 level, the cryptocurrency seems to be locked in a state of uncertainty. Historically, phases such as these are the harbinger of a significant price movement. Yet, the looming question that remains is the trajectory of this impending shift.
Probing the possible path Bitcoin might tread, renowned crypto analyst Alan Santana has conducted an analysis of the Bitcoin chart and put forth a plausible direction.
Bitcoin, it seems, might be on the brink of a downward spiral.
A glance at the cryptocurrency’s performance over the past year provides an inkling of where the trend might be headed. Known for his analytical precision, Santana directs attention to Bitcoin’s steady bullish wave that has persisted for over a year, precisely 479 days, from November 2022 to March 2024.
Historically, sustained bullish trends such as these are invariably followed by a significant price plummet as investors opt to liquidate their holdings. A curious aspect to note is the innate nature of these bearish waves to follow a bullish wave. They unravel at a faster pace, often reaching speeds of 2x or 2.5x that of the predecessor bullish wave.
Delving into the mechanics of this phenomenon, Santana shared, “When the market is rising, people are buying, slowly but surely, building up a position and enjoying the market and profits as everything grows. But when the market swivels, the equation significantly changes.”
As he points out, during a correction, the majority of investors either brace themselves in anticipation or liquidate their holdings when they realize upward potential has plateaued. The swift shift from ‘building a position’ to closing it all is what accelerates the pace of the down move, making it faster than the steady growth observed in upward price trends.
Given these factors, Santana anticipates the bearish wave that follows will be accompanied by a sharp downturn for Bitcoin. This potential scenario could echo across the cryptocurrency market, known for its susceptibility to be more affected by Bitcoin’s movements than Bitcoin itself.
Looking forward, Santana predicts that the impending bearish wave could precipitate more than a 30% plunge from Bitcoin’s current price of $71,000. His analysis indicates an imaginable initial crash down to the $60,000 levels, from which it could nosedive further.
The ultimate trough of this precipitous descent potentially lies at the $47,943 mark—a level Santana envisions as the terminus of the crash. If the trend traces this projection, Bitcoin’s price could be staring down the barrel of a roughly 33% crash—an event that could significantly impact the market, instigating a bearish wave. Therefore, cautious and strategic navigation is necessary in these choppy market waters.