Bitcoin (BTC) is demonstrating initial signs of uncertainty following a significant upward surge, placing the market in a crucial decision-making phase. A crypto analyst has revealed insights on whether the current stall signifies healthy consolidation or a shift in momentum that may affect the wider crypto market.
In a recent analysis, crypto analyst Tony Severino indicates that Bitcoin is moving into a pivotal decision period, with price actions reflecting a mature trend. His chart showcases a solid upward structure that’s begun to decelerate, hinting at a change in market behavior rather than an immediate price reversal. This moment is crucial not just for Bitcoin but for the broader crypto market, which often tends to follow its trends.
Crypto Market’s Next Steps as Bitcoin Reaches a Key Phase
Severino’s chart portrays a consistent rise in Bitcoin’s price, characterized by higher peaks and calculated pullbacks, suggesting that buyers have been predominantly in control. Nevertheless, the latest candles indicate a slowdown in momentum and reduced body sizes, implying that BTC’s bullish strength may be diminishing. The analyst pointed out that the market is currently assessing whether buyers still possess the strength to elevate prices to new heights or if Bitcoin’s upward trend has reached its limit.
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A notable element of the chart is the Doji candle forming at the top of the trend. Severino emphasizes that this candle should not be seen as a sell signal, but as recognition from the market that Bitcoin’s upside potential has concluded. The candle is also interpreted as an initial sign of hesitation, with multiple market outcomes likely.
Severino explained that the market might enter a digestion phase, where Bitcoin’s price consolidates while still maintaining an overall upward trend. Conversely, this halt could indicate distribution, with stronger hands starting to mitigate risk as BTC’s momentum declines.
Another scenario could be a final higher push spurred by renewed conviction and late-cycle enthusiasm. In such a case, Bitcoin might break free from its current slowdown and amplify its gains before facing a new correction. Importantly, Severino’s chart analysis does not determine the ultimate path the market will take, but suggests that the next phases are likely to be pivotal.
Bitcoin Price Could Potentially Dip to $35,000
In another update, crypto market expert Lofty cautioned that Bitcoin may extend its downtrend, potentially leading to a significant price drop. He pointed out notable resemblances between the current BTC cycle and the 2021 bull market, emphasizing a Double Top pattern that has preceded major price declines in former cycles.
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Lofty suggests that if Bitcoin adheres to its historical four-year trend, its price could plummet to $35,000 within the next fortnight. Importantly, the cryptocurrency has already formed its Double Top and is exhibiting initial signs of a prolonged downtrend. Should the price fall to $35,000, it would represent an over 60% decrease from its current valuation of more than $88,500.
Featured image from Getty Images, chart from Tradingview.com
