Bitcoin Price Correction To Extend? Past Trends Points To A Potential 30% Dip

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless bull and bear cycles. The recent performance of Bitcoin, though concerning for some, is not uncharted territory.

In simpler terms, Bitcoin’s immediate future seems uncertain given the rising turbulence in the crypto world. Over the recent period, its value has decreased by up to 11% from its latest record high, sparking discussions among investors about a possible prolonged reduction in price, returning it to earlier support points.

Is Bitcoin Due For A Prolonged Price Pullback?

In simple terms, it seems that the downward trend for Bitcoin could continue over the next few days, as per predictions made by crypto analyst Jesse Olsen and the Market Sniper trading bot creator. Previous trends suggest that we might be approaching a large-scale price correction for BTC.

Based on the analysis of a market specialist, there’s a possibility that Bitcoin might decline by up to 30% in the upcoming days. Interestingly, Jesse Olsen points out that such declines usually occur during robust upward movements, following historical trends.

Essentially, Olsen anticipates a significant decline in Bitcoin’s price due to a bearish cross occurring on the Moving Average Convergence Divergence (MACD) chart. This prediction is based on the fact that Bitcoin has dropped by at least 30% three times previously when the MACD indicator showed a bearish crossover on its 3-day high charts.

The analyst has highlighted four significant price points to focus on as Bitcoin’s downward trend progresses: $92,000, $85,000, $80,000, and $70,000. If Bitcoin reaches 4 out of these 4 potential levels, it suggests that the cryptocurrency may decline towards the $70,000 price range.

If Bitcoin’s overall prediction points towards continued growth, the expected dip might serve as a beneficial restart for the market. This downturn could also present a chance for fresh investors to buy Bitcoin prior to its potential continuation of the upward trend, reaching past earlier resistance points.

According to Olsen’s forecast, his prediction is in line with that of James Van Straten, a senior analyst at CoinDesk news outlet, who anticipates a similar reduction in the near future. Van Straten bases this prediction on several key support levels he identifies as crucial in determining Bitcoin’s next move.

According to Van Straten’s analysis of the Entity-Adjusted URPD metric for BTC, he predicts that $90,000 will be the next significant support level for the digital asset. If this support is not maintained, there could potentially be a drop in price to around $75,000. This move from $90,000 to $75,000 would represent the completion of the anticipated 30% pullback in the value of BTC.

BTC At A Critical Moment

Regardless of the fluctuating market conditions, Bitcoin has established a significant support or resistance line. According to a prominent cryptocurrency analyst, this trend is pivotal for Bitcoin as its future movement largely depends on whether it breaches this key line.

Related Reading: Impending Bitcoin’s Price Correction May Be Brief If This Key Trend Persist

Regarding its importance, the specialist asserts that there’s no need for concern as long as it continues to exceed this moving average. Although the current monthly price chart doesn’t seem optimistic, there’s still a week left before it concludes, hinting at a potential comeback.

Currently, Bitcoin has fallen more than 2% within the last 24 hours, now at approximately $93,977. Investors seem increasingly optimistic, as the daily trading volume indicates an almost 6% rise.

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2024-12-24 20:27