At a time when the crypto market is eerily calm, Bitcoin (BTC) has struggled to gain traction. Its price took a significant hit and is currently hovering around $26,515. Analyst Yashu Gola gave information about the price trajectory of the cryptocurrency, suggesting that BTC could fall further and reach $21,750 in the coming months. Here are the details…
There is a “bearish” sentiment in Bitcoin price
For weeks now, Bitcoin has been at $25,650 as support. It also remained locked in a narrow trading range with resistance at $26,670. It created an atmosphere of stagnation in the market. This range took on the appearance of a “bear flag”, a bearish continuation pattern often seen after a significant downtrend. According to the principles of technical analysis, bear flags tend to resolve with a breakout to the downside. It also results in a decline equal to the height of the previous downtrend. In this case, if the bear flag scenario occurs, Bitcoin would drop to around $23,000. This represents a drop of approximately 15% from its current price.
Historically, Bitcoin’s bear markets have found support near a rising trend line, which has been a defining feature since 2017. In November 2022, BTC price tested this line at around $16,750 before rising by 70%. While it is possible that Bitcoin has already reached its lowest point in this bear market, confirmation of a long-term bullish recovery would require a decisive break above the 0.236 Fibonacci line positioned near $28,350. Unfortunately, according to the analyst, Bitcoin recently fell below this level. So, it increased the possibility of a pullback towards bear market support, which coincidentally is around $23,000.
Next, it’s “death cross”
According to the analyst, another worrying factor for Bitcoin is the upcoming “death cross” formation between the 50-day and 200-day exponential moving averages (EMA). This will mark the third time this bearish signal has appeared during the FED’s interest rate hike period. The previous two examples would herald price declines of 17-18%. If this formation repeats, a downward target of approximately $21,750 will emerge for BTC.
As a result, Bitcoin’s price outlook continues to be clouded by uncertainty as it encounters resistance within a bear flag formation and approaches a “death cross” formation. Analyst Yashu Gola’s warnings about further declines are critical. Because it underlines the need for caution among crypto investors in these turbulent times.
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For the rest of the article, How Far Can Bitcoin Fall? Analyst Announced!