Bitcoin is facing a bearish outlook, with potential for significant price declines in the near future, possibly reaching $20,000 or lower.
A technical analysis of Bitcoin’s price movement suggests the presence of irregular flat corrections and a potential five-wave downward pattern. There is also a possibility of a running flat correction with a diagonal at the end. The daily chart indicates a looming “death cross” between the 50-day and 200-day moving averages, a bearish signal.
Market conditions may worsen with expected interest rate hikes and FTX liquidations, leading to increased fear among retail investors. Bitcoin’s on-chain metrics show a concerning imbalance between selling pressure at the wealthy level and buying pressure at the retail level.
Bitcoin’s weekly chart shows it sandwiched between the 50-weekly and 200-weekly moving averages, with recent doji candles signaling uncertainty. Bitcoin’s price is currently oversold on the weekly timeframe and overbought on the daily timeframe.
Overall, the sentiment is bearish, with potential for a significant price decline. However, the analyst acknowledges the possibility of being wrong.