Analyst Warns Bitcoin (BTC) Price Could Drop Another 20%

Rubmar Garcia

10 months ago

3 mins read

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Bitcoin (BTC) saw a 20% price drop over the weekend, briefly losing the $50,000 support level. The rest of the market followed the flagship cryptocurrency, crashing around 23% in the last three days. Since then, the crypto market has momentarily reclaimed some key levels, but analysts fear the bleeding isn’t over yet.

Is The Bitcoin Bottom In?

Following Bitcoin’s drop below $50,000, crypto analyst Altcoin Sherpa shared his thoughts on BTC’s performance. To him, the flagship cryptocurrency hit one of its possible bottoms on Monday morning after reaching the $49,000 support zone.

The massive drop to the $49,000-$50,000 area, which represented a 17% fall in less than 24 hours, could be the bottom, said Sherpa. However, he believes lower support levels will likely be tested in the coming days.

Per the post, the analyst won’t be “sitting comfortably” until BTC prices test the $40,000-$47,000 area, as these levels “got a lot more support.” Bitcoin’s current price action reminds the analyst of its performance during the 2021 rally.

At the time, BTC saw the January consolidation area “be the key focal point for the temporary bottom” during that summer. The summer 2021 violent dump, which resembles the current crash, was followed by a bottom that “formed over several months.”

Based on this, Sherpa believes that the January 2024 price range could be the key area to watch. He also reaffirmed his previous forecast for the cycle, which asserted that the market would resume its run during Q4 2024 and continue throughout Q1 2025:

What’s going to happen after this dump is anyone’s guess; my personal one is that we chop around for the next several months after this dump is over and then have a great Q4-Q1 of 2025. Survive until then.

BTC Sees The Cycle’s Deepest Retrace Yet

According to Rekt Capital, the recent Bitcoin crash officially became the deepest retrace of the cycle. BTC saw 23% and 25% drops in May and July, respectively, which have now been surpassed by the 29% drop registered in the last two weeks.

Trader and market analyst Crypto Bullet also weighed in on the current BTC performance. To the analyst, Bitcoin’s chart is reminiscent of the COVID-19 crash in 2020, displaying a similar Descending Broadening Wedge pattern.

Per the post, the largest cryptocurrency by market capitalization saw a similar dump in March 2020, followed by a price recovery and breakout from the pattern in the coming months. Similarly, BTC tested the lower support levels within the pattern on Monday morning, which could suggest the price is poised to recover soon.

Nonetheless, Crypto Jelle believes that Bitcoin’s price is testing key levels on this weekly opening. To him, BTC is “still holding inside the descending broadening wedge and holding sensible area of support.” Due to this performance, Jelle considers that “the higher the day end, the better.”

Lastly, renowned analyst Ali Martinez stated that Bitcoin must reclaim the $54,000 support level to prevent dropping to the $40,000 mark. Based on BTC’s MVRV Pricing Bands, the analyst believes the flagship cryptocurrency could soon retest the $67,000 resistance level if it holds the current price.

As of this writing, BTC has recovered 8.8% from its fall, trading at $54,320.

Bitcoin, BTC, BTCUSDT — Bitcoin’s performance in the weekly chart. Source: BTCUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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