The Bitcoin market is currently experiencing a period of consolidation following a significant price drop. This decline has sparked concerns among analysts about a potential correction after the cryptocurrency’s impressive seven-month winning streak.
Crypto expert Alan Santana, in a recent TradingView analysis, suggests that Bitcoin’s recent dip could be the beginning of a more substantial adjustment. Examining the monthly timeframe, Santana highlights the extended bullish run and cautions that a correction is likely on the horizon.
Santana’s analysis, based on technical indicators, suggests potential price drops towards $48,000. However, he acknowledges the possibility of short-term rebounds within this downward trend.
Crucially, Santana emphasizes key support levels to watch during this potential descent. The exponential moving averages (EMAs) at $40,000 (EMA21) and $30,550 (EMA50) are areas where Bitcoin may find support and stabilize.
“The question remains,” ponders Santana, “will Bitcoin manage to close the month above $71,300 and stay in the green? Current events suggest further downward pressure in the coming weeks, potentially leading to lower lows.”
At the time of writing, Bitcoin sits at $63,838, reflecting a 5% drop in the last 24 hours and an 8% decline over the past week.
Despite the current bearish sentiment, some key bullish factors remain, such as the upcoming Bitcoin halving event. Monitoring both market trends and geopolitical developments will be crucial in the coming weeks for investors navigating this uncertain period.
