Analysts Predict Bitcoin Price Could Crash To $40,000, But There’s Good News

Scott Matherson

9 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Despite initial expectations of a steady price increase and a robust bull run this year, Bitcoin (BTC) has suffered severe declines, pushing its price below the $60,000 threshold. Due to the cryptocurrency’s prolonged bearish performance, a crypto analyst has warned that Bitcoin could decline even further, predicting a potential crash below $40,000. However, the analyst also provides a silver lining to his bearish outlook, anticipating a major rebound after the decline.

Bitcoin May Be Headed For A $40,000 Crash

A crypto analyst known as ‘Magog PhD’ took to X (formerly Twitter) on September 1 to share a unique encounter he had with a supposed Bitcoin billionaire. The analyst recounted an unusual experience from his summer job as a waiter in a New York restaurant, where a Bitcoin billionaire slid a piece of paper across the table in the form of a tip.

Upon examination the paper revealed a chart forecasting Bitcoin’s future price trajectory. The chart illustrated that Bitcoin’s price was expected to crash below $32,000, marking a massive decline to new lows. Over the past few months the price of Bitcoin has experienced strong volatility and widespread liquidations which have led to severe price decline.

At one stage, the cryptocurrency tumbled by over 20%, plunging below $50,000 before rebounding to nearly $60,000. The demand for Spot Bitcoin Exchange Traded Funds (ETFs) have also seen a sharp decline, likely playing a role in Bitcoin’s recent downward trend.

Although the Bitcoin price chart projects that the cryptocurrency will crash below $32,000, it also illustrated that Bitcoin would potentially witness a major breakout above $76,000 following the decline. Similar bullish sentiment has been shared by fellow crypto analysts in the market.

According to technical analyst and Bitcoin trader, ‘Titan of Crypto,’ Bitcoin is currently forming a unique technical pattern called the “Cup and Handle pattern.” Often recognized as a bullish continuation signal, the Cup and Handle is a technical chart pattern that highlights a period of consolidation after an uptrend, followed by a slight pull back and an eventual breakout to the upside.

Based on this technical pattern, the analyst believes that Bitcoin is likely to break out soon, reaching a potential price target of $110,000. He disclosed that this bullish price movement could happen in the final quarter of the year, highlighting that the cryptocurrency’s rebound is “going to be epic.”

BTC Achieves Historic Weekly Golden Cross

Bitcoin may have reached a historic milestone, as crypto analyst Jelle has identified the formation of a weekly Golden Cross on the Bitcoin price chart for the first time ever.

The golden cross occurs when a short-term Moving Average (MA) crosses above a long-term MA. This week, Bitcoin’s 100-week MA surpassed the 200-week MA, highlighting a strong bullish signal that could potentially trigger a massive bull run for the cryptocurrency.

Bitcoin price chart from Tradingview.com — BTC price struggling below $59,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.