Urgent Warning: Bitcoin Could Tank to $55,000 – Here’s Why?
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Bitcoin’s recent price movements have left many cryptocurrency traders anxious, as it struggles to maintain its value. With BTC’s price at $60,845 as of June 29, 2024, experts are concerned that it could fall to $55,000.
Bitcoin’s Recent Performance
At the beginning of June, Bitcoin was priced around $67,719, reaching a peak of $71,000 on June 5. However, the price has since weakened, oscillating between $60,000 and $61,800 this week. The 30-day change shows a -10.1% decline, with a 7-day change of -5.4% and a 24-hour change of -1.0%.
Factors Contributing to the Potential Decline of Bitcoin
Trend Model and Market Behaviour: Bitcoin entered a downtrend on June 20, based on trend models. Trend-following funds may increase their short position.
Technical Indicators: Weekly and monthly reversal indicators suggest a broader correction. The weekly RSI peaked in early March and has been declining, while the monthly Stochastics resemble previous multi-month peaks, such as in January 2018 and May 2021. This points to a potential steeper decline.
Double-Trop Price Pattern: Bitcoin’s repeated failure to break above higher resistance levels has formed a double-top price pattern, indicating a possible drop.
Impact of the Halving Event: Since the halving event on April 20, crypto traders have been speculating on price action. A crypto trader, identified as Jelle, noted similarities to the 216 halving cycle.
Current Market Phase: Bitcoin is in a consolidation phase following a historic bull run driven by the launch of spot US Bitcoin ETFs and the halving event. The BTC price has declined over 16% since its March 14 peak of $73,797.
In conclusion, as Bitcoin navigates these challenging times, the market’s future remains uncertain.
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