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Can Bitcoin Reach $40,000 Before a 50% Crash?

Can Bitcoin reach $40,000 before 50% CRASH?
Can Bitcoin reach $40,000 before 50% CRASH?

In a recent episode of Cheeky Crypto, Nick delves into the world of Bitcoin, examining its current price action and potential future trajectory. With Bitcoin’s recent surge and the upcoming halving event, many investors are wondering if the cryptocurrency can reach $40,000 before a significant correction.

Bitcoin Analysis: Technical Indicators and Target Ranges

Analyzing Bitcoin’s 1-hour chart, Nick identifies a potential target range between $37,420 and $39,335. He discusses a zwave pattern, where Bitcoin tapped into the range, faced rejection, and fell in a three-wave pattern. Currently, the token is oscillating around the 50 EMA and 50 SMA, with the 50 EMA acting as resistance.

Despite being in oversold conditions on the hourly, 4-hour, and 8-hour timeframes, Nick expects Bitcoin to push higher into the target range and potentially break the existing high.

Short-Term Expectations: Continued Momentum with Potential Pullbacks

While anticipating continued upward movement around EMAs on the hourly timeframe, Nick acknowledges the possibility of a pullback to the equilibrium range. However, he leans towards a more bullish sentiment, citing the cumulative phasing and the likelihood of Bitcoin shifting back up.

Daily Standpoint: Positive Outlook but Cautious Approach

On the daily timeframe, Bitcoin is within the fifth wave movement, indicating a continuation of the upward trend. Nick references a diagonal structure, suggesting that the pattern is yet to complete. Bitcoin’s position above the 50 EMA, 50 SMA, and 200 EMA reinforces the positive daily outlook.

Potential Corrections: Patience and Risk Management

Nick cautions viewers about potential corrections, emphasizing the importance of patience across different time frames. Analyzing the stochastic RSI on the weekly timeframe, he highlights overbought conditions, a historical indicator of potential corrections.

He mentions the possibility of 20%, 40%, or even 50% corrections, emphasizing the $28,750 support level as a critical zone to watch.

Macro View: Liquidity Hunting and Economic Factors

Nick discusses the broader macro bearish pattern and economic factors influencing Bitcoin’s price action. He observes liquidity hunting in the market, expressing concern about volumes and the strength of current bullish signs.

He also speculates on market reactions to potential events like the approval of a Bitcoin spot ETF and the upcoming Bitcoin halving.

Conclusion: Data-Driven Analysis and a Call to Action

Nick encourages viewers to share their opinions in the comments section and engage in the discussion. He acknowledges the several months remaining until the halving and the potential approval of a Bitcoin spot ETF.

Despite these bullish catalysts, he emphasizes that the data does not align with a strong bull market, expressing concerns about volume and liquidity.

Nick concludes by reminding viewers to like, subscribe, and enable notifications to stay updated on the latest cryptocurrency news and analysis from Cheeky Crypto.

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