The Bitcoin price broke above $75,000 earlier this week, marking the highest level for the pioneer cryptocurrency for over one month. But while this move has led to an improvement in the overall investor sentiment, it could end up being a trap. This is called out by analyst TheOnePct, who explained that the correct move could end up being part of a larger Flat correction that began years ago. In this case, it would only be a matter of time before the Bitcoin price falls again.
Bitcoin Break Confirms Structural Weakness
The analysis follows the Bitcoin price movement since 2021, expressing that this current move is still part of the correction that began almost five years ago after the 2021 bull market. Instead of marking the bottom for BTC, the crypto analyst explains that it is likely a B-wave of the Flat correction.
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The current price movements, the analyst suggests, are actually ‘structurally consistent’ with this Flat correction. One of the things that seems to correlate is the fact that the Bitcoin price has been seeing very aggressive declines. It coincides with the C-wave of a flat correction, which spells even more bad luck for the cryptocurrency.
Another thing the analyst calls out is that the current C-wave looks to be terminal in nature. This simply means that the current trend is inherently corrective. As a result, it is likely that the price will reverse and fall further even after the correction.
What To Expect
Interpreting the decline of the Bitcoin price, the analyst says the trend suggests that Wave 1 has actually not bottomed. If that is the case, then the recovery into the $70,000s may only be temporary in nature. Not only this, but that the digital asset is likely forming a Diametric pattern.
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Going by this, the crypto analyst says that the Bitcoin price is likely moving through Wave F, which could end up being more complex in terms of the sideways movement. Eventually, though, this is expected to end in a decline, leading into Wave G.
Wave G is more bearish than the previous wave, and as the price begins to move through, it is expected to fall below $60,000, bottoming somewhere around $55,000. “BTC has already shown clear structural weakness, and that weakness is likely to continue hunting the market for quite some time,” the analyst said. “Because of this, the market may remain in a bearish environment for longer than most expect.”
Featured image from Dall.E, chart from TradingView.com
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