Bitcoin Braces for Sharp Decline as Expert Predicts Price Floor
Bitcoin’s price movements have been closely watched as it strives to establish stability above the $65,000 support level. A trading expert has indicated a bearish scenario based on technical analysis.
In a recent post on TradingView, expert Alan Santana pointed out a strong rejection Bitcoin faced, signaling a potential shift towards a bearish trend. Santana highlighted a double top pattern formed in May and early June, typically indicating a transition from a bullish to a bearish trend, further reinforcing the negative outlook for Bitcoin.
The expert also noted a consistent decline in trading volume, supporting the bearish sentiment. Lower volumes often suggest weakening buying interest, setting the stage for a potential price decline. Santana emphasized that accumulating bearish signals point towards a new low for Bitcoin, with immediate support levels projected at $62,470 and a critical level at $59,883. He suggested the possibility of Bitcoin falling to previous lows at $56,552 and potentially further to $55,000, $52,000, or even $50,000 in the short term.
Looking ahead, Santana forecasted a significant momentum shift around June 21-23, anticipating heightened volatility and substantial price movements during that period. The expert highlighted critical levels to monitor, indicating that a break below $59,856 could lead to a test of the previous low at $56,552. Conversely, a break above the descending channel could signal a potential reversal, although overcoming strong resistance around $67,485 would be crucial.
Santana’s analysis aligns with the prevailing bearish sentiment surrounding Bitcoin, especially after the cryptocurrency failed to reach the $70,000 mark. Another analyst, TradingShot, warned of potential further capitulation if Bitcoin fails to hold the $61,000 support zone.
At the time of reporting, Bitcoin was trading at $65,430 with daily losses of about 0.30% and down over 4% on the weekly chart. The cryptocurrency faced challenges throughout the week, with significant drops and unsuccessful recovery attempts. The resistance at $67,000 and the critical support level at $65,000 are key areas to monitor, as continued struggles below these levels could confirm a bearish trend and potentially lead to lower price levels in the near future.
It is important to note that the information provided should not be considered investment advice, as investing in cryptocurrencies carries inherent risks.
