The post Bitcoin Heading For Bigger Drop? These Key Patterns Could Decide Its Next Move! appeared first on Coinpedia Fintech News
Bitcoin’s price fall doesn’t seem to be stopping anywhere soon. As of now, Bitcoin is down 2.20% to about $55,900, its lowest level in a month, with a market cap of $1.10 trillion. However, insights from BitcoinSensus point to two key corrective patterns forming on the daily chart. These could be crucial in deciding if Bitcoin’s price will go lower or make a bullish comeback in the days ahead.
Bearish Outlook: Drop to $44K
According to BitcoinSensus, the Y wave of the current pattern may extend downward to the $44,000 level as shown in the 1-day BTC price chart. This projection aligns with the common 1:1 extension target for a Y wave, suggesting that Bitcoin might face a further decline if this bearish scenario materializes.
Bullish Possibility: Triangle Formation Ahead?
On the bullish side, BitcoinSensus points out that the Y wave could develop into a triangle formation, completing an ABCDE structure. If this happens, Bitcoin’s price could stay above $48,888 and potentially rise from there. This would be a more positive sign for Bitcoin’s future.
The analysis by BitcoinSensus provides key insights into possible future trends for Bitcoin. Whether the cryptocurrency heads towards the $44,000 target or follows a more bullish triangle pattern will be crucial in determining its price direction in the coming months.
Bitcoin To Crash Hard?
Echoing a more bearish voice, well-known chart expert Ali Martinez has raised concerns about a potential Bitcoin crash. Martinez highlights that the TD Sequential indicator on Bitcoin’s two-month chart has signaled a major sell-off.
He warns that if Bitcoin fails to hold the important $51,000 support level, the cryptocurrency could face a significant downturn. This potential crash could drive Bitcoin’s price down to around $40,600.
According to Martinez, Bitcoin is at a critical point, and its next moves will be crucial for its short-term future. Recently, Bitcoin saw $38.35 million in liquidations over the past 24 hours. This indicates that traders have been heavily affected by the ongoing price declines.