Bitcoin Price Prediction: Analyst Sees Potential for Further Drop
Bitcoin (BTC) recently experienced a significant price drop, falling below the $60,000 mark. Now, a prominent cryptocurrency analyst, CrypNuevo, believes that BTC could revisit its lows and even drop further in a bearish market.
Key Technical Indicators
CrypNuevo has identified a few key technical indicators that support his bearish outlook. One of the most notable is the $51,700 price level, which aligns with leverage liquidation pools formed after the recent price plunge. This level also coincides with the 50-week exponential moving average, a respected indicator of price and trend.
Wick-Filling Strategy
CrypNuevo often uses a “wick-filling strategy” to identify potential price reversals. This strategy analyzes candlestick wicks, which are the long tails on candlestick charts that represent price extremes. Historically, Bitcoin has a tendency to “fill” these wicks, revisiting 50% or 100% of their length before reversing direction.
According to CrypNuevo, BTC will likely retrace to the level between $55,200 and $53,540, filling the recent wick. However, bearish macroeconomic data, such as the United States Consumer Price Index (CPI), could drive Bitcoin even lower.
Potential Resistance
While CrypNuevo expects a further drop in Bitcoin price, he also believes that lower-than-expected CPI data could fuel a surge back to $60,000. However, he considers this level to be a strong price resistance point and expects it to be difficult to break on the first attempt.
Breaking out of the $60,000 resistance level would put Bitcoin back into its four-month trading range, making the recent drop a temporary deviation.
Investor Cautions
With the current market volatility, investors are advised to be cautious and avoid excessive leverage in their trades. The next few weeks will be crucial for determining the direction of Bitcoin’s price.
