Bitcoin’s(BTC) meteoric rise has seemingly stalled, leaving investors wondering: is a correction imminent, and if so, how deep will it cut? Crypto analyst Alan Santana dives into the charts, painting a picture of a potential price crash on the horizon.
Santana points to Bitcoin’s impressive 16-month bullish wave, stretching from November 2022 to March 2024. Historically, such extended bull runs are often followed by a downward spiral as investors cash in on their profits.
However, Santana warns, these bearish waves tend to unfold much faster than their bullish counterparts, potentially unraveling at a rate of 2 to 2.5 times quicker.
“The psychology behind this is simple,” explains Santana. “During a bull run, investors slowly accumulate holdings, savoring the gradual price climb. But when the market turns, the sentiment shifts dramatically.”
Santana argues that investors either anticipate a correction or react swiftly when they sense a shift. Unlike the measured buying behavior seen in a bull run, a correction triggers a mass exodus, with investors eager to close their positions to avoid further losses. This rapid selling fuels a steeper price decline compared to the ascent.
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The analyst predicts a sharp crash for Bitcoin(BTC), potentially dragging the entire cryptocurrency market down with it. Based on his analysis, the price could plummet over 30% from its current $71,000 mark. The initial drop could land near $60,000, with a further decline following suit.
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Santana’s bearish outlook paints a worrisome picture, with a potential bottom near $47,943 – a staggering 33% plunge from Bitcoin’s current price. This scenario would undoubtedly cast a long bearish shadow over the entire cryptocurrency market.
While Santana’s analysis provides valuable insight, it’s important to remember that the cryptocurrency market remains highly volatile and susceptible to unforeseen events. As always, investors should conduct their own research and exercise caution before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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