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Bitcoin Price Prediction: Brace for a Potential 40% Drop

LAST PUMP for BITCOIN before 40% DROP?
LAST PUMP for BITCOIN before 40% DROP?

Introduction

In the latest video Nick from Cheeky Crypto delves into the current price action of Bitcoin and provides insights into its potential future trajectory. Nick suggests that Bitcoin might experience a significant downward correction before embarking on a larger upward move.

1-Hour Time Frame Analysis

On the 1-hour timeframe, Bitcoin is currently trading within a channel. A recent breakout from this channel is interpreted as a breakdown structure, indicating a potential bearish trend. The current resistance level for Bitcoin stands at $37,988, and a breakout above this level could signal a shift towards positive momentum. However, Nick anticipates a retracement towards $35,500, forming a double bottom pattern.

While the 1-hour timeframe shows positive momentum, the 4-hour and 8-hour timeframes exhibit mixed signals, suggesting a less confident outlook.

Price Predictions and Patterns

The overall expectation is for Bitcoin to experience a breakdown towards $35,500. However, Nick acknowledges the concept of “smart money” suggesting a bullish phase, despite the current ranging market. This contradiction presents opportunities for short positions within the higher range target.

Daily Time Frame and Wave Structure

On the daily timeframe, Bitcoin’s price action is characterized as a fifth wave movement within a larger pattern. While Nick anticipates a breakdown, he also expect a significant upward move in the future. An expanding diagonal pattern has been identified, with a target for wave five around $38,750 to $40,000.

Weekly Time Frame

The weekly timeframe reveals an ascending wedge pattern, which is considered bearish. This pattern, along with overbought conditions, suggests a potential retracement of up to 40%, aligning with a $20,000 CME gap.

Market Speculation and Factors

Various technical indicators, including candlestick patterns, Elliott wave theory, and stochastic RSIs, support the bearish outlook. Additionally, potential reasons for a market downturn include Bitcoin spot ETF rejections and global events.

Conclusion

The overall analysis suggests that Bitcoin might experience a downward correction before embarking on a larger upward move. Investors should exercise caution and conduct thorough research before making any trading decisions.

Call to Action

Nick encourages viewers to share their thoughts and insights in the comments section and invites them to like, subscribe, and enable notifications for future updates.

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