After reaching the $71,000 mark, the price of Bitcoin has come to a halt, and it is currently hovering in a state of uncertainty and indecision regarding its position. It goes without saying that these intervals serve as a precursor to a significant shift; however, predicting the direction in which the price will move is an entirely different affair.
In an effort to ascertain the course that Bitcoin will take in the future, cryptocurrency analyst Alan Santana has conducted an exhaustive analysis of the Bitcoin chart and developed a possible course of action.
Bitcoin Might Be Going in the Right Direction
Alan Santana analyzes Bitcoin’s performance over the previous year to forecast its price movements in the future. The analyst observes that Bitcoin’s price has been on an upward trend for more than a year, specifically 479 days, beginning in November 2022 and continuing until March 2024. This upward trend has been going on continuously at this point.
When optimistic trends continue for an extended period, it is a matter of course that there will eventually be a downward plunge as investors begin liquidating their assets. This is something that is anticipated to happen. The issue is that downward trends tend to accelerate after an upward trend, and given that the upward trend has persisted for sixteen months, it is anticipated that the downward trend will unfold rapidly. This is the source of the problem. An analyst in the cryptocurrency market claims that it frequently outpaces the bullish wave by a factor of two or two and a half times.
In his explanation, Alan Santana stated that when the market is experiencing an upswing, individuals gradually accumulate assets and take pleasure in the expanding market and the profits that result from it. In the event that the market goes through a transition, this is not the circumstance that occurs.
In addition to this, he provides further explanation of the concept of corrections, stating that individuals have two choices: either they can make preparations in advance, or they can sell once they realize that the potential for growth has been exhausted.
Rather than “building a position,” the majority of players, upon discovering that the wave has come to an end, typically close their entire position. As a consequence of this, the downward movement can pick up speed significantly, which allows us to comprehend why the decline is more rapid than when prices are increasing.
Taking this into consideration, the cryptocurrency analyst forecasts a downward trend, which will result in a significant decrease in the price of Bitcoin. As a consequence, the entire market would be affected, particularly those industries that are more susceptible to potential losses than Bitcoin.
Which Way Is the Price of Bitcoin Going to Go From Here?
According to the cryptocurrency analyst, a bearish wave is expected to occur, which has the potential to result in a significant decrease in the price of Bitcoin. It is speculated that the price could drop by more than thirty percent from its current value of seventy-one thousand dollars.
The chart indicates that there is a possibility of an initial decline all the way down to approximately sixty thousand dollars, which would then be followed by a projected continuation of the downward trend.
According to the analyst’s forecast, the plunge is anticipated to end at $47,943. If this scenario were to occur, the price of Bitcoin would experience a sharp drop of approximately 33 percent. A development of this nature might have a significant and detrimental effect on the market’s sentiment.
