The crash in Bitcoin prices started over the weekend, causing the digital asset to drop beneath the $112,000 support level. Notably, this decline was anticipated by several crypto analysts who had highlighted the vulnerabilities surrounding Bitcoin during this period. As these forecasts begin to materialize, this report examines the overall predictions, with many indicating that the Bitcoin price decline is far from finished and must delve deeper before reaching a bottom.
Bitcoin Price Is Set to Fall Below $100,000
Crypto analyst HAMED_AZ had previously identified that the Bitcoin price was within a descending channel. Given the bearish trend, a crash was anticipated, which indeed occurred.
Additionally, the Bitcoin price had broken its short-term ascending trendline while hitting the upper boundary of the descending channel, facing resistance in the $117,000-$120,000 range. As the bears resisted the price, the decline began.
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The presence of resistance at the 61.8% Fibonacci retracement level further catalyzed the corrective move. The breach of the short-term ascending trendline allowed the bears to regain control of the digital asset.
Despite the significant drop so far, the crypto analyst asserts that as long as the price remains below $118,000-$120,000, the bearish pressure will persist. The potential target is beneath $106,000, but the descending trendline indicates a bottom as low as $96,000 in the worst-case scenario.
Bears Retain Control
Another anonymous crypto analyst on TradingView has explained why the Bitcoin price remains bearish. The drop below the ascending trendline and the Ichimoku cloud indicates that momentum has shifted downward.
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With the loss of the $113,000 support, subsequent targets are lower. Prices are projected to plunge towards $108,000 before potentially finding a bottom. Nevertheless, there may be a chance for recovery if bulls manage to reclaim support between $113,000 and $114,500. A decisive close above $115,000 would negate the current bearish trend.
In contrast, analysts like CrypFlow on X are feeling more optimistic following the decline. Their analysis indicates that the Bitcoin Bollinger Bands are experiencing a squeeze again. Coupled with a bullish Stochastic RSI cross and a momentum surge, the analyst believes this sets the stage for the Bitcoin price to rally higher.
Featured image from Dall.E, chart from TradingView.com
