Bitcoin Price May Face Major Plunge, Warns Crypto Analyst Canfield

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As the world of cryptocurrency continues to evolve, the fluctuation in Bitcoin prices remains a topic of avid discussion among seasoned crypto enthusiasts and new initiators alike. The recent plunge in Bitcoin’s value, which saw a drop of more than 22% since mid-March’s peak of over $73,000, has stirred a ripple of anxiety. Currently, the tempo has steadied with its price hovering above the $57,000 mark. However, Jacob Canfield, a trusted mentor at Trading Mastery, cautions that this could signal more rough patches ahead.

Canfield’s recent analysis suggests that Bitcoin’s price shows potential to plummet, potentially plunging to lows not recorded since the beginning of the fiscal year. His forecasts rely on historical precedence observed in Bitcoin’s pricing trajectories. Drawing on previous years, Canfield notes that Bitcoin has an established pattern of revisiting its yearly opening levels, which chartists keenly observe to confirm either a bull or a bear trend.

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Past trends indicate that since 2017, aside from notably missing in 2023 and 2024, the annual opening price has been retested within the same year. For instance, a pessimistic retest occurred just before the cataclysmic pandemic-induced crash in 2018, with more instances cropping up in the subsequent years. The 2020 yearly open saw retesting early on – within the first three months of the year – and the 2021 opening price retest served as a prologue to a significant rally, skyrocketing to $69,000, before FTX’s subsequent crash. The opening of 2022 saw a bearish retest, akin to 2018, but with lows circling around $16,500.

Peering into the crystal ball of Bitcoin’s future, Canfield muses on the possible price bottom for the virtual currency in the months to come. A technical examination of Bitcoin’s performance will tell you that the 2023 and 2024 yearly opening prices have yet to be retested. The question, then, is whether Bitcoin finds a bottom at 2024’s yearly open before claiming more record highs, or whether a full capitulation to the 2023 yearly open at $16,500 is in the cards.

To decode this cryptocurrency conundrum, Canfield draws upon a few pivotal technical indicators. The 0.618 Fibonacci retracement level, closely aligning with 2024’s yearly opening, hints at the emergence of sturdy support in the vicinity of the $38,000 to $42,000 range. A potential fallout of Bitcoin’s value in sync with this forecast would translate into a staggering 33% crash for those currently holding BTC. Additionally, the weekly 200 EMA/MA Ribbon – aligning with 2024’s opening price – is another critical indicator earmarked by Canfield as a potential robust support zone.

Canfield’s analysis isn’t all doom and gloom, despite its bearish airs. He leaves room for various outcomes, underscoring Bitcoin’s cyclical market dynamics and the instructive role of historical trends in shaping forecasted trajectories.

At the last report, BTC traded at $57,479. As all eyes affix on Bitcoin’s potential to reclaim the 200-week EMA, it’s evident that, for now, the world of cryptocurrency is a graphite sky of uncertainties and possibilities in equal measure.