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Bitcoin faces the mother of all crashes as this support gets retested

source-logo  finbold.com 19 April 2024 18:29, UTC

After briefly plunging below $60,000, Bitcoin (BTC) has rebounded, aiming to sustain its gains above the $65,000 mark. Notably, the cryptocurrency has exhibited heightened volatility leading up to the halving event, yet uncertainty looms regarding its future trajectory.

In this regard, in a TradingView post on April 19, crypto trading expert Alan Santana forecasted a grim outlook for Bitcoin, hinting at the possibility of ‘the mother of all crashes’. This projection is rooted in Bitcoin’s current support levels.

Santana highlighted Bitcoin’s struggle with a critical support range between $59,000 and $63,000, emphasizing that it has faced over five challenges recently, pointing to a weakening position for the cryptocurrency.

After Bitcoin briefly dropped to around $59,000 in the last 24 hours, the expert suggested that the movement further exacerbates fears of an impending crash. The expert indicated that bears currently hold sway in the market dynamics, hinting at a downward trajectory for Bitcoin’s price.

“The more often a support level is challenged, the weaker it becomes.<…> The fact that this level continues to be challenged tells us that the bears have the upper-hand. If the bulls were winning, we would be seeing resistance being challenged rather than support.<…> Prepare for the crash,” the expert warned.

Bitcoin’s levels to watch

According to Santana’s analysis, Bitcoin may encounter a potential rebound at the EMA50 level, although the future remains uncertain. He cited two critical support levels in the event of a sustained downturn: $44,400 and the range between $37,000 and $33,333, both serving as potential targets for bearish momentum.

Overall, Bitcoin has experienced a resurgence in its price amidst reports suggesting de-escalating tensions in the Middle East. The recent spike in geopolitical tensions had previously prompted a sharp decline in Bitcoin’s value from the $70,000 threshold.

Additionally, the upcoming halving event is contributing to market dynamics, with miners exhibiting bearish tendencies. Miners have been offloading their Bitcoin holdings in anticipation of reduced rewards post-halving, potentially rendering some operations unprofitable.

Bitcoin price analysis

As of press time, Bitcoin traded at $65,290, reflecting daily gains of approximately 4%. However, on a weekly basis, Bitcoin has incurred a decline exceeding 8%.

Given Bitcoin’s short-term resilience, Santana’s insights warrant consideration, particularly as Bitcoin continues to test the crucial $63,000 support level, indicating the maiden crypto is not out of the woods yet.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.