Bitcoin is holding steady above the $60,000 support zone, but a cryptocurrency analyst has issued a warning about a potential significant decline for the leading digital asset.
The analyst, Alan Santana, predicts that Bitcoin could crash and hit a major low in the upcoming months, particularly if it continues trading below $70,000. Santana highlighted the technical challenges Bitcoin has encountered since reaching an all-time high of $74,000 in March 2024. A bearish signal emerged in early March, leading to a downward trend with lower highs and ultimately a crash in August. Santana believes that unless key levels are reclaimed, the current downward trend will persist.
Santana’s bearish stance is bolstered by the descending triangle pattern seen on Bitcoin’s chart, which signals a potential decline to as low as the $30,000 range. However, he mentions that a breakout above $71,000 or a new low with reduced selling volume and oversold indicators could shift Bitcoin into a bullish trajectory.
Despite the bearish outlook for Bitcoin, Santana sees potential in the altcoin market, where small-cap altcoins have turned bullish. Another crypto trading expert, Ali Martinez, points out that Bitcoin is at a critical juncture, with its most crucial support zone at $63,300. If this level is maintained, Bitcoin could target $65,500; otherwise, a move towards $60,365 is possible.
Currently trading at $63,650, Bitcoin has shown gains over the past 24 hours and the last seven days, indicating a strong bullish trend. The cryptocurrency is positioned well above both the 50-day and 200-day simple moving averages, suggesting positive momentum for potential growth.
In conclusion, while Bitcoin faces the possibility of a major decline, it also has the potential for recovery based on key support levels and market indicators.