Bitcoin’s latest bounce has already run out of steam.
After failing to reclaim a critical resistance level, BTC is flashing multiple bearish signals that suggest the recent recovery may have been only temporary.
With momentum rolling over and downside targets coming into focus, traders are now asking a familiar question: Why is Bitcoin going down again?
Bitcoin Price Analysis
Bitcoin’s weekly time frame price action shows a decline of over 31% since the all-time high of $126,269.
The decline caused a crash below the $91,500 horizontal area, which had been in place for a year.
Over the last three weeks, the price of Bitcoin made three unsuccessful attempts to reclaim this area (red icon).
This week, Bitcoin’s price is creating another bearish candlestick.
The inability to reclaim this area confirms that bears are in control, and this week could bring another Bitcoin price crash.
Will Bitcoin Keep Going Down?
Momentum indicators confirm that the breakdown is the most likely future movement.
The Relative Strength Index (RSI) generated a bearish divergence.The Moving Average Convergence/Divergence (MACD) did the same.Both indicators are in negative territory.
Combined with the price action, the RSI and MACD readings confirm that the next move is likely to be downward.
This week, the most likely future Bitcoin prediction is a 10% crash to the $77,000 horizontal support area, possibly deviating below it.
The April low is at $74,480, so the Bitcoin price could deviate below it before eventually bouncing.
While another crash is the most likely future movement, the main question is what will happen afterward.
Bitcoin Price Prediction
The wave count suggests that the Bitcoin decline is in its final leg.
The BTC price initiated a five-wave downward movement (red) following the all-time high.
If the count is accurate, the ongoing bounce was the completed wave four.
Hence, wave five is likely underway.
The most likely target for its conclusion is between $70,100 and $72,000.
The target is created by:
1.61 external Fibonacci retracement (black).Giving wave five 1.61 times the length of wave one (red).
Once the Bitcoin price reaches that level, a massive bounce could occur.
Reasons For the BTC Price Decrease
One contributing factor to the decline could be Wintermute’s dumping of $1.5 billion in Bitcoin.
According to Marusha, Wintermute is doing this to cover its previous losses.
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