Over the past few months, the price of Bitcoin has fallen as the crypto market reacted to negative news. One of the major events contributing to this decline was the United States’ attack on the Iranian armed forces. Since the war had a negative impact on the broader financial markets, the price of Bitcoin was not left behind. And even now, as the digital asset appears to be forming something akin to a bottom, the price is still expected to continue to collapse.
Bitcoin ABC Wave says the last straw has not happened
Bitcoin price continues to struggle after bears initially broke support at $70,000, and the resulting weakness has threatened a further downtrend. The move matches crypto analyst Minga’s prediction that the digital asset was actually stuck in an ABC wave trend.
In the analysis shared on Platform X (formerly Twitter), the analyst explained that Bitcoin is actually sticking to this trend. Even though historical movements don’t always play out the same way, there is still ample opportunity for investors to be cautious.
Digging deeper into the wave pattern, the analyst chart shows that the start of the wave began with a price tag over $100,000. As the price fell, the wave continued to manifest. The last of these is the fact that the Bitcoin price has now entered the final stage of the wave and this is the most bearish part.
The final wave, Wave C, is the one that typically results in the most decline. Here, this is expected to trigger a nearly 50% drop in the price of the digital asset. Going by historical performance, following this trend would see the price of Bitcoin eventually fall below $40,000.
As for the end of this decline, the analyst places the bottom of the decline around $34,000. While there is some wiggle room for this, it is still very likely that the price will drop that low. It is therefore important to take into account such a development in the performance of Bitcoin.
When it comes to key support levels across all of these, the analyst highlighted some support just below $50,000. Specifically, support lies at $49,577 if the price starts to decline. Below this level, however, there is virtually no support for the cryptocurrency.
Featured image of Dall.E, chart by TradingView.com
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