After the Bitcoin price recovered from the flush to $63,000 over the last week, expectations are that the uptrend could continue. This has sparked predictions for the next rally and that the BTC price could move above $70,000 as a result of this. However, one analyst has thrown a wrench in this move, predicting that there could be another crash coming. This could lead to the final bottom, but suggests that much lower prices are coming first.
The Ending Diagonal That Suggests Bitcoin Is Headed Downward
EduwaveTrading posted an analysis on the TradingView website that paints a rather bearish picture for the Bitcoin price, at least in the short term. This prediction has to do with Bitcoin not reaching the previous swing low, and this could mean that there is another wave coming to help it hit that swing low.
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As a result of the swing low not being hit, the crypto analyst suggests that Bitcoin could have dropped into an expanding ending diagonal pattern. This pattern, despite the recovery, points to another possible downward move. This move would be the start of a deeper downtrend that sends it to new yearly lows.
The swing low target here lies just above $62,000 and could be a magnet for the price at this point. If the expanding ending diagonal pattern plays out, it means there is one more flush left. Once the swing low is broken, the analyst points out that Bitcoin could drop further below $59,000 before finding support again.
Given this pattern, the crypto analyst suggests that investors may want to wait for this next flush to play out before doing anything. Only then would it be ‘safe’ to enter into Bitcoin, in order to avoid further losses.
BTC Is Still Very Bearish
Just like EduwaveTrading, another crypto analyst, Behdark, has predicted that Bitcoin will see another crash. This time around, the analyst points to the takeout on the downtrend lined the fact that the momentum has been dropping ahead, suggesting that Bitcoin is still very bearish.
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If the sellers continue to hold strong, then the crypto analyst sees Bitcoin falling toward $61,000, which coincides with the swing low that EduwaveTrading points out. Both of these analyses together say that it’s highly likely that the BTC price sees a strong move downward before establishing enough support to continue upward again.
Featured image from Dall.E, chart from TradingView.com