BTC price dropped to $58,402 but returned to $60,000 half an hour before daily close. BTC, which lost over 7% today, caused deep spikes in altcoins. Days of declines liquidated hundreds of millions of dollars in long positions in futures. So, what are the predictions of crypto analysts?
Crypto Analysts’ Predictions
Some experts say the next move for BTC is a deeper correction towards $50,000. Markus Thielen, founder of 10x Research, wrote in his latest assessment that Bitcoin is testing its support level due to a double top formation. This formation is a structure where a break at the support, defined as the neckline, is expected after two similar peaks.
When the neckline breaks, losses are expected equal to the distance between the peak and the neckline.
“Bitcoin could potentially lead to a sharper decline by transitioning from the current trading range (60,000-70,000) to a top formation. This chart formation should be our base case unless invalidated. This formation can easily trigger a drop to $50,000 if not $45,000. As observed over the past three months, trading within a certain range is a complex phase often marked by several false breakouts. Historically, top formations have left the average individual investor vulnerable, and many altcoins have experienced significant declines.”
Comments on Cryptocurrencies
Thielen says that despite two major supportive developments, a significant price drop could be seen. The US elections and CPI data are expected to increase risk appetite for risk markets by the end of the year. Biden’s response to Trump by reducing crypto pressure and the expectation of continued decline in CPI data do not affect cryptocurrencies much in the short term.
Crypto investor Jelle says Bitcoin’s price action is similar to the 2016 halving cycle and that lingering at the previous cycle peak for a long time is normal.
“We are moving increasingly deceptively at current prices. Either everything is already over, or we are close to a bottom.”
Rekt Capital also wrote that the recent drop below $60,000 was the last opportunity before BTC continues its parabolic rise.
