Despite Bitcoin’s 13% drop last week, which saw it break below the psychological $60,000 level and fall 20% from its all-time highs, one X analyst remains resolute.
Based on the weekly chart, the trader keeps an optimistic outlook, saying that the currency will shake off weakness in the next session. This lines up with bulls through most of Q4 2023 and Q1 2024.
Bitcoin is falling, loses $60,000
Bitcoin is under intense liquidation pressure, battling the deluge of sellers. Earlier today, BTC broke below $60,000, melting below the April 2024 lows.
This confirmed the April 13 bears, signaling a possible start of a bearish formation that could see BTC lose ground, paring gains from February and March 2024.
However, the analyst maintains that the uptrend will remain as long as Bitcoin remains above the $49,000-$52,000 support zone, absorbing all the selling pressure.. This assessment, based on the candlestick arrangement, can serve as a guarantee for BTC holders. The trader claims that despite the sell-off, the panic is unjustified at this time.
Referring to the Elliott Wave Principle, a technical analysis indicator, the analyst highlights that the currency is simply pausing. For those with a more aggressive trading strategy, the dip, ideally towards the support zone above, could represent an opportunity to buy on dips in anticipation of Wave 5.
At the moment, the analyst grades Bitcoin is in Wave 4, a stage that will take approximately the same time as Wave 2. Then prices fell after a brief recovery, peaking in May 2023. However, prices rise in Wave 3, pushing prices below $30,000 to new all-time highs, reaching $73,800.
The fall from historic highs for spot rates, looking at the Elliot Wave Theorymay indicate that prices are in Wave 4 before the eventual rise, ending in Wave 5.
Even so, it is still unknown when BTC will go from the bottom to the top. As things stand, the analyst said traders should watch two exponential moving averages (EMAs) from periods 21 and 50. A retest of these dynamic levels could offer support, preparing traders to buy dips in anticipation of Wave 5 Final.
However, the analyst did not define the next possible target even on the chart.. Still, if Wave 3 is approximately the same duration as Wave 5, Bitcoin has a strong chance of exceed $100,000 after the current volatile price action ends.
DALLE Featured Image, Chart from TradingView
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