Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go
January 24 2022 - 6:00PM
NEWSBTC
Bitcoin has had a rollercoaster of a month in January. The digital
asset which enjoyed much success in 2021 has walked into 2022 with
bloody feet. Since then, it has managed to crumble more than 50% of
its $69K all-time high. As nerves run high, investors scramble to
make sense of when the onslaught will cease. As bitcoin is yet to
see any significant support below the $40,000 level, analyst says
the worst may be yet to come. Bitcoin Has Lost Critical Support
Level Pseudonymous analyst Dave the Wave is known in the crypto
space for being one of the few to call the May crash. Last year
when prices of digital assets like bitcoin went into a frenzy, Dave
had been one of those to sound the alarm for the incoming price
crash. Not long after, the market had indeed seen a price crash
that led to about a 50% downward correction. Related Reading
| Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely
This time around, the analyst has issued another warning. Using
multiple charts, Dave the Wave lays out their analysis of the
bitcoin market. The prognosis? Further downward correction towards
$25,000 may be possible. BTC begins recovery trend | Source: BTCUSD
on TradingView.com The analysis spreads over multiple tweets where
Dave the Wave educates their 90K Twitter followers on what they
expect from the market. Firstly, they analyzed using the Fibonacci
extension. After measuring its potential head and shoulders,
landing on a downside of $25,000. They note that bitcoin had
already broken through a critical support level. Under which there
is not much support, meaning that the price of the digital asset
was prone to continue falling. “The problem is once it loses that
40K area, there’s not much support below,” the analyst said. BTC
loses support at $40K | Source: Twitter What’s In Store? Naturally,
the next steps were to figure out possible bounce points for the
digital asset. They do this by mapping out where there would be a
trend reversal. “A lower level again and lines of resistance that
price would have to cross before even thinking of a trend
reversal.” Since this call, the price of bitcoin has since fallen
below this point, now touching as low as $33,000. BTC misses trend
reversal | Source: Twitter Related Reading | Market May Be
Suffering But Bitcoin And Ethereum Will Pull Back Stronger,
Bloomberg Analyst Presently, the last chart in the series shows a
possible upward reversal if the digital asset was able to hold
above $35K. BTC fails to hold above $35K | Source: Twitter Since
the tweet went live, bitcoin has not done well in the market and
has in fact dropped below this point. If Dave the Wave’s analysis
is anything to go by, then investors may need to brace themselves
for impact as the next stop may very be the $25,000 range, which is
the next major support point. Featured image from LinkedIn, charts
from Twitter and TradingView.com
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