Crypto trading experts warn Bitcoin (BTC) investors that a price crash could be imminent as the maiden digital asset struggles to break through the $65,000 resistance level. suggested that there is.
On May 12th TradingView post, analyst Alan Santana He highlighted signs that the price of Bitcoin could fall. Santana He pointed to Bitcoin's technical indicators and recent price movements as evidence supporting the possibility of a coming crash.
Experts have identified troubling patterns reminiscent of cap formation and suggesting an impending trend reversal. Compounding this observation is that the all-time high and subsequent low session ended with a red candlestick below the key Exponential Moving Average (EMA) of 10, suggesting a bearish trajectory for Bitcoin.
Furthermore, the expert noted that Bitcoin has been trading below the 10 EMA for two consecutive weeks, further cementing the bearish sentiment prevailing in the market.
How far will Bitcoin fall?
Considering these relevant indicators, Santana He gave a grim outlook for Bitcoin next week. He predicted that the cryptocurrency was initially expected to fall toward the 50 EMA, near $46,000, as it faces increased pressure from sellers.
As noted by analysts, the expected decline is poised to start a temporary rebound, and then briefly make new highs. After that, analysts predict that Bitcoin could fall further below $40,000.
“Expect the following: an initial decline towards EMA50 (around 46,000), a solid bounce and a cut to the highs in the short term, followed by a test of MA200 near $34,000. “This is based on a weekly time frame,'' the expert noted.
This likely scenario could significantly dash Bitcoin investors' hopes that the leading cryptocurrency would maintain support above the $60,000 threshold. Since falling from an all-time high of $73,000 hit in March, the market has been eyeing a potential price bottom before returning to an upward trajectory, with the next consensus target remaining at $100,000. That's worth noting.
Finvold's report noted that in the short term, Bitcoin's technical indicators suggest that Bitcoin is likely to revisit the $72,000 level.
Remarkably, Bitcoin's current troubles come despite its asset record increasing interest from institutional investors, as evidenced by major US banking giants. For example, Wells Fargo revealed its current ownership of 2,245 shares of Grayscale Bitcoin Trust (GBTC) worth $121,207.
Similarly, JPMorgan (NYSE: JPM) disclosed its total holdings in the Spot BTC ETF through an SEC filing. The bank reported purchasing approximately $760,000 in stock in various Bitcoin trusts.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $61,040, with a daily loss of almost 0.3%. On the weekly chart, BTC is down 4%.
As it stands, Bitcoin could potentially do the following: Santana's Forecast if the current $60,000 support cannot be maintained. Therefore, this level remains an important point to focus on.
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