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Bitcoin: Brace for Volatility – Are We Facing a Breakdown or Bullish Bounce?

Bitcoin Crash: The Worst is NOT over!
Bitcoin Crash: The Worst is NOT over!

Bitcoin’s recent rollercoaster ride leaves investors wondering: Is the worst over, or are we in for a deeper plunge? While the past few days saw the price break through key resistance levels, it has met a formidable barrier at $44,600-$44,718. This rejection has turned previous support into resistance, raising alarms about a potential breakdown and “death cross” formation.

Don’t panic just yet. The immediate focus lies in the $45,23-$49,37 support range. If Bitcoin can hold this ground and complete key technical structures, a bounce back towards the upper trend line is still possible. Elliot Wave Theory also suggests a corrective phase rather than a major downtrend, offering a glimmer of hope.

But the bull case isn’t foolproof. Technical indicators like Stochastic RSI and bullish RSI divergence hint at potential upward momentum, but the daily timeframe paints a different picture. The $43,777-$43,956 resistance zone needs to be decisively breached for sustained bullish momentum. The broader chart pattern, however, reveals a concerning trend of higher lows and lower highs, suggesting a potential breakdown.

Looking beyond the short-term, the outlook remains cautiously optimistic. Resistance on the weekly timeframe sits at $45,717-$48,234, and failure to close above the 702 Fibonacci retracement could limit further gains. Downside targets include $40,000, followed by potential consolidation at $35,000-$37,000, and possibly even a dip to $33,000.

The looming Bitcoin Spot ETF approval adds another layer of uncertainty. Expect a “sell the news” event that could trigger a correction towards $30,000. But remember, this isn’t the end of the story. In the long term, a bullish scenario projects a top-out range of $98,199-$173,779, aligning with a historical trend line connecting previous peaks.

So, what should you do? Buckle up for volatility. This is not the time for FOMO, but strategic DCA can be your friend. Stay informed, analyze the market closely, and be prepared to adapt your strategy as the tides turn. While the short-term may be bumpy, Bitcoin’s long-term potential remains bright.

Remember, knowledge is your best weapon in this volatile market. Trade wisely, and don’t let the fear mongers drown out the sound of Bitcoin’s future success!

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