Is Bitcoin Poised for a Crash? Analyst Warns of Descending Triangle Formation
Bitcoin’s Price Under Scrutiny: Analyst Signals Potential Crash
\n
A leading crypto analyst, Alan Santana, has issued a cautionary warning regarding Bitcoin’s (BTC) current price trajectory. Santana’s analysis points to a bearish descending triangle formation on the cryptocurrency’s price chart, suggesting a potential price crash may be on the horizon.
\n
While Bitcoin currently holds strong above the $60,000 mark, Santana’s report raises concerns about its sustainability. He highlights that Bitcoin’s price is already 20% lower than its March 2024 All-Time High (ATH) of over $73,000. Santana posits that a decline to $37,000 would represent a significant 50% correction from its ATH, suggesting a potential for a substantial downturn.
\n
Descending Triangle Pattern: A Bearish Indicator
\n
Santana’s analysis emphasizes the formation of a descending triangle pattern on Bitcoin’s monthly chart. This pattern, he explains, is a bearish signal and its breakdown suggests an impending price crash. He further points out that Bitcoin has been exhibiting lower highs in both the short-term and mid-term for over six months, solidifying the bearish trend.
\n
Based on this analysis, Santana predicts that Bitcoin could dip below the $49,000 mark. He notes that the next Fibonacci retracement level below $49,000 sits around $40,000 to $43,000, indicating that the main target for this bearish forecast could be even lower.
\n
Bitcoin’s Upward Trajectory Hinges on $70,000 Breakout
\n
While Santana’s analysis suggests a potential crash, he also acknowledges that a bullish turnaround could occur if Bitcoin can successfully break above the $70,000 mark. He highlights that a strong confirmation above this price level would be necessary to consider Bitcoin bullish for this cycle.
\n
Santana emphasizes that achieving one or two weekly or monthly closes above $70,000 could spark a bullish market shift. However, he warns that with Bitcoin currently trading above $60,000, the market is mainly witnessing over-leveraged traders being liquidated and the growth of altcoins.
\n
As the crypto market continues to evolve, the insights provided by analysts like Santana are crucial for navigating the volatile landscape. While a Bitcoin crash remains a possibility, the potential for a bullish uptrend also exists. It is important for investors to remain informed and adjust their strategies accordingly.