After Bitcoin price recovered from its plunge to $63,000 last week, the uptrend is expected to continue. This has sparked predictions for the next rally and that the BTC price could surpass $70,000 as a result. However, one analyst put the brakes on that move, predicting another crash could come. This could lead to a final bottom, but suggests much lower prices come first.
The Final Diagonal That Suggests Bitcoin is Heading Down
EduwaveTrading published an analysis on the TradingView website that paints a rather bearish picture for the price of Bitcoin, at least in the short term. This prediction is related to Bitcoin not reaching the previous low, which could mean another wave is coming to help it reach that low.
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Since the low was not reached, the crypto analyst suggests that Bitcoin could have fallen into an expanding ending diagonal pattern. This trend, despite the recovery, suggests another possible downward movement. This move would be the start of a deeper downtrend that would send it to new yearly lows.
The swing low target here sits just above $62,000 and could be a magnet for the price at this point. If the diagonal pattern at the end of the expansion plays, it means that there is one more color left. Once the low is crossed, the analyst points out that Bitcoin could fall further below $59,000 before finding support again.
Given this trend, the crypto analyst suggests that investors may want to wait until this next chase happens before doing anything. Only then would it be “safe” to enter Bitcoin, in order to avoid further losses.
BTC is still very bearish
Just like EduwaveTrading, another crypto analyst, Behdark, predicted that Bitcoin would experience another crash. This time around, the analyst points out that the downtrend is because momentum has slowed, suggesting that Bitcoin is still very bearish.
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If sellers continue to hold on, then the crypto analyst sees Bitcoin falling to $61,000, which coincides with the low highlighted by EduwaveTrading. Together, these two analyzes indicate that it is very likely that the BTC price will see a sharp decline before establishing sufficient support to continue higher.
Featured image of Dall.E, chart by TradingView.com
