The crypto trader, who correctly predicted the May 2021 crash for Bitcoin, explained the worst-case scenario for BTC, which has dropped nearly 50% from its all-time high for the second time in a year.
The analyst, known as Dave the Wave, told his 90,000 Twitter followers that Bitcoin has lost a key $40,000 support level and is at risk of further downside. According to the analyst, Bitcoin will likely reach support at $30,000, but risks falling as low as $25,000 in a worse-case scenario.
“The problem is that when it loses the $40,000 area, there is support, albeit not much, below.
best case scenario [devam eden düzeltmede] – $30,000
Worst case scenario – $25,000
Macro bull.”
Dave the Wave uses Fibonacci extensions to make predictions. Here, too, he uses a possible bearish head and shoulders pattern to set the $25,000 target he predicted.
“For those wondering about the fib extension here, it creates a potential head and shoulders pattern.”
According to the closely-followed crypto trader, for Bitcoin to establish bullish momentum again, the flagship crypto-asset must first convincingly rise above the descending resistance at around $41,000.
“Keep it simple folks. A lower level again and resistance lines (according to the chart below) that price must cross before considering a trend reversal.”
Finally yAt the time of writing, Bitcoin is trading at $35,201, down almost 50% from its all-time high of $69,000.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.