Leading crypto Bitcoin$BTC
, has managed to partially recover its losses after falling to $60,000. However, one analyst emphasizes that despite BTC being above $60,000, fundamental and technical indicators point to a major decline.
Analyst warns of collapse for Bitcoin!
Analyst Alan Santana says that Bitcoin’s failure to hold key support levels is the source of the correction signal. Bitcoin has been trapped in a descending channel since April, creating lower highs and lows. The recent touch of the upper trendline at $65,000 has added further downward pressure. Santana summarizes the situation as follows:
“This could be the last warning before a major crash and the start of a long-term downtrend. BTC has been down for almost 7 months and this corrective phase is heading towards a major crash.”
The analyst argues that Bitcoin has failed to generate upward momentum since its peak earlier this year. Geopolitical instability, particularly in the Middle East, the strengthening of the US dollar and the growing influence of Tether are among the factors that are adding to the downward pressure. He also notes that there are signs of weakness in broader financial markets. Signals of a Fed rate cut and tremors in global stock markets suggest that Bitcoin is poised for a dramatic decline. Historical data shows that Bitcoin has experienced major volatility ahead of the presidential election, suggesting that the current situation will become even more dangerous for leveraged investors. Santana predicts that Bitcoin could potentially fall to $40,000 or below, which could lead to months of consolidation.
On the other hand, another analyst named TradingShot claims that Bitcoin is preparing for a significant rally. This analyst states that Bitcoin's "cup and handle" formation is active and has set a price target above $90,000 by the end of the year. CryptoCon also supports the bullish expectation, predicting that Bitcoin's rally will begin on November 28, 2024. These predictions coincide with Bitcoin's halving cycles and show that significant price increases have occurred after past halving events. It is stated that the biggest gains begin in the first 12 months following the halving, which is often referred to as the "red year."