News
Bitcoin: A worrying technical correction!
8:18 am ▪ 4 min read ▪ by Mikaia A.
Hong Kong’s Bitcoin and Ethereum ETFs disappoint, observers express dismay. It’s no surprise as Bitcoin continues to struggle to rise again, losing around 4% at the start of the week. One question remains: how far can the price of Bitcoin fall?
Bitcoin downtrend: how far will it go?
Despite hopes of a bull run after halvingBitcoin is slow to take off, undermining the optimistic projections of Robert Kiyosaki, author of “Rich Dad, Poor Dad”, and his financial circles, who were betting on Bitcoin reaching 100,000 or even a million dollars in the near future. It seems that a revision of these forecasts is necessary.
The price of Bitcoin is in free fall! The current fix follows a falling wedge pattern, with two trend lines converging to an estimated peak of around $54,000. According to analystsBitcoin could fall to this level in June if the current trend continues.
The target of falling wedge It is about 63,880 dollars, representing an increase of around 3.5% in relation to current price levels. In other words, every dip can offer a buying opportunity.
However, some analysts are less optimistic. Pedro Brandtan experienced trader, believes that the price of Bitcoin could fall towards the Range of 40,000 to 50,000 dollars. According to him, Bitcoin was unable to surpass its previous highs, despite the halving and ETFs. He even predicts a dip in the “early 40s” followed by a recovery.
Brandt bases his prediction on a descending triangle which developed after Bitcoin failed to reclaim its previous record high of $69,000. He warns that if Bitcoin breaks the triangle’s lower trendline, it could fall to $48,550a drop of more than 20% from current price levels.
The 2021 Fractal Indicates More Pain Ahead
From a technical point of view, the recent correction in Bitcoin’s price is accompanied by a drop in weekly Relative Strength Index (RSI), which has exited the overbought zone. This move brought the RSI below a multi-month ascending trendline, reminiscent of the trend before a sharp price correction in 2021.
In 2021, BTC fell towards its 50-week EMA (the red wave), suggesting the possibility of a repeat of the same pattern in 2024. Therefore, BTC’s downside target is around $46,110 in June, the level corresponding to the 0.618 Fibonacci retracement line.
A significant break below the 50-week EMA could send the price to the 200-week EMA at around $32,410, a drop of about 58% from current price levels.
Maximize your Cointribune experience with our ‘Read to Win’ program! Earn points for each article read and gain access to exclusive rewards. Register now and start accumulating benefits.
Click here to join ‘Read to Earn’ and turn your crypto passion into rewards!
Mikaia A.
The blockchain and cryptography revolution is underway! And on the day when the impacts were strongly felt on the economy, the most vulnerable in this world, although with all hope, I say that you are the one who chose
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.