The world of cryptocurrency is bracing for potential turbulence as a prominent analyst forecasts another significant price crash for Bitcoin, the preeminent digital asset. With its recent subpar performance over the last few months and emerging indicators pointing towards a danger of exhaustion, the leading cryptocurrency is hovering close to a critical transitional phase that could see it tumble below $85,000.
Analyst Breaks Down Chart Signaling Bitcoin Price Crash
In a recent analysis shared on TradingView, ‘EliteGoldAnalysis,’ a respected figure in the crypto analysis community, conveyed his concerns regarding Bitcoin’s impending trend. His chart breakdown suggests the current downtrend is far from over, and if Bitcoin’s momentum continues to lose steam, essential support levels could be tested.
EliteGoldAnalysis points to a telling price structure on Bitcoin’s chart, where a weak high has surfaced. This condition often precedes liquidity grabs before an inevitable reversal. The weak high appearing at the peak of Bitcoin’s latest rally reflects a scenario where buyers may have been washed out, just prior to a momentum shift.
According to the analysis, the formation of lower highs indicates an evolving bearish structure. From this perspective, the analyst asserts that a bearish trend could only be confirmed with a break below minor support under this weak high, followed by a retest of that level.
While it’s vital to approach these charts with caution, and the analyst’s observations are interpretive rather than prescriptive, they cannot ignore the mounting selling pressure. The current market sentiment underscores a challenging landscape for Bitcoin price recovery.
How Low Bitcoin Price Could Decline
EliteGoldAnalysis highlighted several pivotal zones in his TradingView chart, which may dictate Bitcoin’s trajectory moving forward. The first target lies in the purple zone above $85,000, deemed a critical demand area. If Bitcoin manages to stabilize around this threshold, it will provide a crucial juncture, determining whether a downward correction or upward momentum follows.
Slightly lower, a robust support level identified in blue sits at $84,000. The analyst suggests that this could serve as the ultimate retracement target and may well accumulate a significant liquidity pool to attract buyer interest if the price continues its descent.
A drop towards the $84,000 vicinity would represent over a 6% decline from current levels, hovering just above $89,000. Such a move would signal a confirmation of the bearish trend indicated in the charts. In the preceding 24 hours, Bitcoin faced approximately a 3% drop, and reaching $84,000 would exacerbate the ongoing downwards trajectory.
Featured image from Unsplash, chart from TradingView
