The pessimistic setup sees Bitcoin worth blooming to as low as $25,000.aba
Bitcoin (BTC) may well be forming a supposed "double top" pattern when falling by over half-hour from its record high of $69,000, suggests Peter Brandt, a veteran monger noted for properly line the crypto market high in December 2017.
The issue LLC CEO recalled Bitcoin's inability to increase its worth rally on top of its previous incomparable high close to $65,000 when a second strive. Meanwhile, he illustrated a right away damage for the BTC worth at a questionable neck close to $30,000 whereas alerting regarding any declines below this key level.
Is a 50% Bitcoin price crash realistic?
In detail, traditional chartists understand the formation of 2 consecutive super, every resulting in a robust value retracement to the draw back, as a symbol of pessimistic reversal. The draw back target in an exceedingly double high state of affairs involves be about as deep because the height of the pattern's formation.
But the double high draw back target is somewhat fantastic here as a result of confirmation of the pattern would counsel an almost $35,000 decline in Bitcoin value. Meaning, BTC value would be in danger of bloody below $0 in a good world, a scenario that is very unlikely.
Nonetheless, ought to the value break bearish below the neck of $30,000, Bitcoin's final draw back target could end up to be the 200-week exponential moving average (200-week EMA; the orange wave within the chart below), presently concerning 50% below the present value levels, near $23,500.
The 200-week EMA has been instrumental in line of work out the bottoms during a market, as shown by the upward-pointing arrows within the chart on top of. However, Brandt reminded:
"A chart pattern is NOT NOT NOT a chart pattern until it is completed and confirmed. Until that time it is only of passing interest to me."
Just another BTC price dip?
Ignoring the potential pessimistic outlooks, Bitpanda's chief product officer Lukas Enzersdorfer-Konrad declared that Bitcoin's value decline from $69,000 to $42,000 is comparable to its could 2021 value crash, whereby it plunged by over 50%, solely to pare all those losses and hit a replacement record high later.
"Similarly to the recent drop, overleveraged positions inflated volatility and wiped away most of the long positions," Enzersdorfer-Konrad told Cointelegraph in an exceedingly statement via email as he mentioned the $2.5 billion value of liquidation in an exceedingly matter of hours on Dec. 4, that caused around 20% intraday correction in most liquid crypto assets.
The analyst added:
"The Bitcoin market needs some time to recover in these situations, and intraday charts are still volatile, but it is still bullish on the higher time frame."
( Yashu Gola, Cointelegraph, 2021)