Emily Walker
The outlook for Bitcoin in the near term seems pessimistic, as volatility increases across the cryptocurrency market. Recently, Bitcoin’s value dipped as much as 11% after hitting a new all-time high, leading to speculation about a possible extended price correction back to prior support levels.
Could Bitcoin Experience a Significant Price Drop?
Bitcoin’s recent downturn may persist over the coming days. Crypto analyst Jesse Olsen, known for creating the Market Sniper trading bot, has pointed out historical trends that indicate BTC might face a considerable price correction shortly.
Olsen suggests that Bitcoin’s price could fall by as much as 30% in the near future. He draws comparisons to previous market cycles, noting that significant corrections typically occur during strong upward trends.
Olsen particularly highlights the bearish crossover on the Moving Average Convergence Divergence (MACD) indicator as a signal for a substantial pullback, as Bitcoin previously underwent corrections of at least 30% thrice when the MACD indicated similar trends on the 3-day chart at higher levels.
The analyst has identified four critical price levels to monitor during Bitcoin’s downtrend: $92,000, $85,000, $80,000, and $70,000. If Bitcoin reaches all four levels, it might drop to around $70,000.
While the short-term outlook seems grim, Bitcoin’s long-term prospects remain positive. This anticipated correction could serve as a reset for the market, presenting a buying opportunity for new investors before Bitcoin potentially resumes its rise toward previous resistance levels.
Olsen’s assessment is echoed by CoinDesk’s senior analyst, James Van Straten, who predicts a comparable pullback in the near future. Van Straten points to significant support levels that could influence Bitcoin’s trajectory.
After analyzing Bitcoin’s Entity-Adjusted URPD metric, Van Straten identifies $90,000 as a critical support level for the cryptocurrency. If this support fails, it could lead Bitcoin down to the $75,000 mark, representing a potential 30% correction.
Bitcoin at a Pivotal Point
In the midst of market fluctuations, Bitcoin has established an essential trendline. Market expert Titan of Crypto considers this trendline vital for Bitcoin’s direction, as it needs to break through for upward movement.
Given the situation’s importance, the expert assures that there is no reason to panic as long as Bitcoin remains above this trendline. Although the current monthly candle may not look bullish, there is still a week left before it closes, indicating a potential rebound.
Currently, Bitcoin has experienced a decline of over 2% in the last day, trading at $93,977. However, daily trading volume reflects a growing positive sentiment among investors, having increased by nearly 6%.