Bitcoin Faces Further Pressure with Possible Drop to $59,000 Amid Market Volatility
Summary:
Following a 15% dip during the weekend, new lower Bitcoin (BTC) price targets are being anticipated by traders and analysts. After testing $61,000, Bitcoin failed to sustain a rebound and currently hovers around $62,000. Analysts speculate that Bitcoin could potentially drop to about $59,000 soon. A look into the upcoming weekly close also shows that BTC/USD lost the support of its 10-week simple moving average (SMA), implying delicate market conditions. Longer timeframes suggest that Bitcoin may stay at lower levels longer before retesting its highs.
Following a weekend dip of as much as 15%, Bitcoin (BTC) is facing added pressure as the market speculates about the next potential bottom. Amid this, questions arise on how rapidly such a transition could transpire. Could a final descent to $59,000 occur by April 17? Notably, BTC/USD failed to maintain a significant rebound after testing $61,000 and around $62,000 was the marker as of April 16.
Mark Cullen, a notable analyst, predicts a renewed assault on the $60,000 resistance. Utilizing the Elliott Wave approach, Cullen proposed a forthcoming plunge could be imminent, with Bitcoin possibly settling at around $59,000.
In a post on X (the platform formerly known as Twitter), he noted, "It's still quite feasible that Bitcoin has one more drop to conclude the Wave C of the larger horizontal correction structure. This should happen soon if it's to occur."
A plunge to $59,000 would be Bitcoin's lowest since late February and would denote a roughly 20% decline from recent highs— the largest to date.
In the same vein, several other analysts, including Matthew Hyland, are keeping a keen eye on the weekly close for insights into the current retreat's durability. Hyland noted in an X post that BTC/USD fell below its 10-week simple moving average (SMA), currently pegged at $64,130.
He wrote, "This is heavily dependent on how the weekly candle wraps up. The last time it was tested, it was an excellent buying chance, and it didn't close underneath it. The closing is what will be significant."
Candles fully below the 10-week SMA were last seen in mid-2023 according to data from Cointelegraph Markets Pro and TradingView.
As for Binh Dang, a contributor to on-chain analytics tool CryptoQuant, Bitcoin fans might face testing times on longer timeframes. According to his Adjusted Cumulative Value Days Destroyed (CVDD) metric, Bitcoin could likely linger lower before retesting highs.
Explaining his methodology on X, Dang explicated, "My adjusted CVDD metric accurately identified local peaks and now I anticipate Bitcoin returning to Phase 2 (orange line) to test and accumulate."
While history suggests severe corrections can transpire, Dang doesn't anticipate the current geopolitical drive behind the drop to cause panic levels similar to March 2020's COVID-19 market crash. He regards a stopover to the chart's “Phase 1” line hovering below $40,000 as the "worst-case scenario".
This article is not intended to provide investment guidance or recommendations. Any investment or trading action carries risk, and readers are encouraged to undertake their own research before deciding.
Published At
4/16/2024 1:27:46 PM
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