A crypto analyst has confirmed an impending Bitcoin (BTC) crash, citing the formation of a bearish descending triangle on the cryptocurrency’s price chart. With Bitcoin’s price recently holding above the $60,000 mark, speculation now centers on how low this anticipated downturn could plunge.
Alan Santana, a TradingView crypto analyst, has published a report warning of potential risks in Bitcoin’s current price behavior. Santana pinpointed a possible price crash driven by the formation of a descending triangle. He noted that Bitcoin is currently trading above $60,000, around 20% lower than its March 2024 all-time high of over $73,000.
Santana hypothesized that if Bitcoin were to drop to a price level of $37,000, it would represent a 50% decline from its March peak. Such a decline would be viewed as a strong correction from the all-time highs. He added that trading at $37,000 could be advantageous for Bitcoin, particularly before significant political events like the upcoming United States presidential elections in November. According to the analyst, trading below $40,000 or $37,000 would set the stage for a significant recovery to new highs.
However, since Bitcoin is currently trading at $63,635, which is close to a critical resistance level, this indicates strong momentum. Santana explained that an unexpected event or market shakeout could potentially trigger a massive price decline for the cryptocurrency.
Additionally, Bitcoin has formed a descending triangle pattern, which Santana flagged as bearish. He revealed that this pattern on the monthly chart has broken to the downside, confirming an impending price crash. He warned that investors should brace for a Bitcoin crash, citing the cryptocurrency’s prolonged sideways movement with a bearish bias over the past six months. Santana pointed out that BTC has been printing lower highs in both the short-term and mid-term for over six months, which is an indication of a bearish trend.
Based on Bitcoin’s market behavior, the descending triangle pattern, and its current price, Santana predicts that Bitcoin could dip below $49,000. He identified the next Fibonacci retracement level below $49,000 as ranging from $40,000 to $43,000, suggesting that the main target for this bearish forecast could be even lower.
Despite emphasizing the potential for Bitcoin to crash below $49,000, Santana also mentioned the possibility of a major uptrend if Bitcoin’s price can break above the $70,000 mark. He indicated that a strong confirmation above this level is necessary to consider Bitcoin bullish in this cycle. Specifically, he noted that achieving one or two weekly or monthly closes above $70,000 could ignite a bullish turnaround for the market. As Bitcoin rises and maintains a price above $60,000, the market has primarily seen over-leveraged traders being liquidated and the growth of altcoins.
