After Bitcoin price recovered from last week's flush to $63,000, there are hopes that the uptrend could continue. This triggers predictions of the next rally, which could result in BTC price surpassing $70,000. However, one analyst disputes this move and predicts that another collapse is possible. This could lead to an eventual bottom, but it suggests a much lower price to come first.
Diagonal ending suggests Bitcoin is heading down
EduwaveTrading has published an analysis on its TradingView website that paints a fairly bearish picture for Bitcoin prices, at least in the short term. This prediction has to do with Bitcoin not hitting the lows of the previous swing, which could mean another wave is coming that will help Bitcoin lower its swing.
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Crypto analysts suggest that Bitcoin may have fallen into an extended exit diagonal pattern as a result of the swing low not hitting. This pattern indicates the possibility of another decline despite the recovery. This move will likely be the start of a deeper downtrend to new year-to-date lows.
The swing-low target here sits just above $62,000, which could lead to some price pull at this point. If the Extended Exit Diagonal pattern is expanded, it means there is one more flush left. Analysts note that once the swing low is broken, Bitcoin could fall further below $59,000 before finding support again.
Given this pattern, the crypto analyst suggests that investors may want to wait for the next flush to occur before taking any action. Only then will it be “safe” to enter Bitcoin to avoid further losses.
BTC remains very bearish
Similar to EduwaveTrading, another cryptocurrency analyst, Behdark, also predicts that Bitcoin will crash again. This time, analysts point to a decline in a downtrend backed by the fact that momentum is falling ahead, suggesting that Bitcoin is still very bearish.
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If sellers remain strong, crypto analysts see Bitcoin falling towards $61,000, which is in line with the swing lows noted by EduwaveTrading. Putting both of these analyzes together shows that we are very likely to see a strong decline before BTC price establishes enough support to continue rising again.
Featured image from Dall.E, chart from TradingView.com
