Bitcoin has maintained its position above the $60,000 support level, but a crypto analyst believes a significant downturn is on the horizon for the pioneering digital asset.
The analyst, Alan Santana, expressed concerns about Bitcoin potentially crashing and establishing a major low in the near future if it continues to trade below $70,000. Santana pointed out technical challenges faced by Bitcoin since hitting an all-time high of $74,000 in March 2024, highlighting a bearish signal that emerged in early March, signaling a downward trajectory for the market.
Santana emphasized the ongoing downward trend in Bitcoin, indicating a continued series of lower highs and a potential drop to as low as the $30,000 range. The analyst highlighted a descending triangle pattern on Bitcoin’s chart, further fueling bearish sentiments.
Despite the bearish outlook, Santana outlined two scenarios that could potentially shift Bitcoin into bullish territory: a breakout above $71,000 or the formation of a new low with reduced selling volume and oversold indicators. However, he stressed that clearer signs of a reversal are needed before any optimism can be justified.
Santana suggested that Bitcoin is likely to experience a major low before any significant recovery, with crash timelines possibly in September or November 2024. While forecasting a possible downturn for Bitcoin, Santana also pointed out a potential opportunity in the altcoin market, particularly in small-cap altcoins that have turned bullish compared to Bitcoin.
Another crypto trading expert, Ali Martinez, highlighted Bitcoin’s critical support zone at $63,300, where a significant accumulation of transactions took place. Maintaining this support could lead Bitcoin to target $65,500; otherwise, a breach could result in a downward move to $60,365, the next potential support level.
At the time of writing, Bitcoin was trading at $63,650, showing gains of approximately 0.7% in the last 24 hours and nearly 7% over the past week. The cryptocurrency’s positive price trend is supported by trading above both the 50-day and 200-day SMAs, indicating favorable momentum for further growth.