Bitcoin’s short-term outlook continues to look negative as volatility increases in the overall cryptocurrency market. Over the past few days, the digital asset has fallen by as much as 11% since hitting a new all-time high, sparking speculation within the community about an extended period. Price correction To previous support levels.
Is Bitcoin set for a long price decline?
Bitcoin’s recent bearish performance may extend significantly in the coming days. Cryptocurrency expert and creator of the Market Sniper trading bot Jesse Olsen Highlight Previous patterns suggest that BTC may be on the verge of a major price decline.
According to the market expert, Bitcoin may fall by up to 30% in the following days. Drawing parallels with past cycle trends, Jesse Olsen highlights that these types of corrections typically occur during the cycle Big uptrends.
Specifically, Olsen expects a notable pullback as Bitcoin undergoes a bearish crossover on the Moving Average Convergence Divergence (MACD) indicator. This is because Bitcoin price It has seen at least a 30% retracement the last 3 times the MACD has seen a bearish crossover on the 3-day chart at high levels.
As prices fluctuate, the analyst pointed out four key levels to pay attention to, such as $92,000, $85,000, $80,000, and $70,000, once BTC’s downtrend extends. If BTC achieves 4 out of 4 targets, this means that the cryptocurrency asset could fall to the $70,000 range.
Given that Bitcoin’s long-term outlook remains bullish, the expected correction may provide a positive reset for the market. Moreover, it can provide an opportunity for new investors to do so Buy Bitcoin Before resuming its upward momentum towards previous resistance levels.
Olsen’s predictions are also in line with those of a senior analyst at the CoinDesk news outlet, James Van Straaten, who… Expectations A similar level of decline in the coming days. The analyst cites several important support levels in determining Bitcoin’s next direction.
After examining the entity-adjusted URPD in BTC metricVan Straaten claims that $90,000 is the next major support point for the digital asset. With no specific support at this point, a $75,000 limit may be possible once BTC loses the $90,000 support point. Thus, the move from $90,000 to $75,000 represents the completion of the long-awaited 30% pullback.
BTC is at a critical moment
Despite the constant fluctuations in the market. Bitcoin It has formed the most important trend line. Titan of Crypto, Market Expert, It is considered The most important trend for BTC as its next direction depends on the breakout of the line.
Given the importance of the development, the expert claims that there is no reason for concern as long as it remains above this trend line. Although the monthly candle does not look bullish now, there is one week left before it closes, indicating a possible return of the rally.
Currently, Bitcoin has fallen more than 2% in the past day to $93,977. Daily trading volume shows a rise in optimistic sentiment among investors as it rose by almost 6%.
Featured image from Unsplash, chart from Tradingview.com