How Much Lower Can the Price of Bitcoin Go?
-
Written by
Yana Levkovich - Updated 2024-09-05 14:39:55
The Bitcoin price has dropped by 22% from its all-time high, and many analysts predict it will bottom out between $45,000 and $50,000.
The bitcoin price has dropped by over 3% over the past seven days, wiping off most of the gains from the low on August 5, when it was $49,500
The price of bitcoin has decreased by 20% in the last 90 days, and during that time, daily trade volume has decreased by 32%. However, a quick rebound from the current price level is doubtful since several signs indicate a further decline.
Analysts predict that Bitcoin may fall to $50,000
Because of Bitcoin's downward trend, analysts at 10x Research are projecting values in the low $50,000s.
The following figure, given by 10x Research analyst Markus Thielen, illustrates how the price of Bitcoin fell during the most recent correction below the rising trendline of an asymmetrical triangle. A breach of this support line suggested that the lows below $50,000 on August 5 might be tested again.
MN Capital's founder, Michael Van de Poppe, has a similar goal for Bitcoin. According to Van de Poppe, Bitcoin broke below its August 15 low of $56,000 to retrieve the demand-side liquidity beneath it.
However, since there was no upward bounce, Bitcoin could drop even lower to “$53k or even $49K” before rising again.
During the three-week decline from August 25 to September 4, when the price of Bitcoin dropped from $65,000 to $55,555, it once again broke below the 200-day exponential moving average (EMA).
Renowned trader Skew commented on the most recent price movement, pointing out that the price of Bitcoin has raised ask bids to about $58,000. This implies that in the near run, Bitcoin bulls faced severe opposition at this level.
Technically speaking, Bitcoin's price movement has resulted in the construction of a bear flag pattern, which is a corrective arrangement that occurs when the price settles inside an upward-sloping range after a significant drop in price.
When price breaks below the lower trendline and declines to the height of the previous downtrend, bear flags usually end. Accordingly, $45,450 is the lower goal price for Bitcoin, which was last seen on February 9.
Furthermore, at 44, bitcoin's daily relative strength index is negative. This implies that the market circumstances were still favorable to the negative, increasing the likelihood that BTC will hit its bear flag target.
