Bitcoin 5TH Wave Is Not Over Yet, And Price Could Still Crash To $52,000; Analyst Warns

Overview

Bitcoin is currently approaching the $70,000 mark, but analysts are cautioning that significant concerns linger around the $64,000 level. Crypto analyst Tara has expressed worries that Bitcoin’s fifth wave may not be complete, suggesting that further declines could be on the horizon.

Current Situation

As Bitcoin inches closer to $70,000, concerns are arising about the potential for a downturn. Tara, a crypto analyst, has indicated that the ongoing market movements could represent either the beginning or the concluding phase of a fifth wave decline. In her analysis, Tara has highlighted the possibility of Bitcoin’s price dropping to as low as $52,000.

Technical analysis reveals that Bitcoin has established major support in the range of $59,900 to $60,500. This support level is derived from previous swing lows and is characterized by a noticeable double bottom formation on the 4-hour candlestick price chart. Additionally, this zone aligns with deeper Fibonacci retracement levels projected from prices above $70,000.

Tara notes that if Bitcoin’s price were to decline to this support region, it could trigger a strong reaction, potentially driving the price back up to around $64,400. However, this rebound may only be a temporary measure in the context of the broader market structure. If the macro fifth wave continues to unfold as anticipated, the market might be poised for one last push downward after testing this resistance level.

The outlook for a drop to $52,000 is described as a worst-case scenario, especially considering Bitcoin’s ability to maintain levels above $60,000 throughout February. This suggests that while the potential for a significant decline exists, it is not yet a foregone conclusion.

Tara’s analysis also points to the Relative Strength Index (RSI) on the 4-hour timeframe, which is trending lower and nearing oversold territory. She has advised traders to keep an eye out for bullish divergence on the RSI during any forthcoming drop, as such a divergence could signal the conclusion of the current corrective structure.

From author

The current situation surrounding Bitcoin highlights the volatility and uncertainty inherent in the cryptocurrency market. As traders and investors navigate these fluctuations, the analysis provided by Tara serves as a reminder of the importance of technical indicators and support levels. The potential for significant price movements, whether upward or downward, underscores the need for careful monitoring of market trends.

Impact on the crypto market

• Bitcoin’s approach to the $70,000 mark is creating a tense atmosphere among traders, with the $64,000 level being pivotal for future movements.
• The established support at $59,900 to $60,500 could act as a critical safety net, but a drop below this range may indicate further losses.
• The RSI nearing oversold conditions may present opportunities for traders to identify potential rebounds in the market.
• The dynamic between support and resistance levels will play a significant role in shaping short-term trading strategies.
• Overall, the current analysis suggests that Bitcoin’s price trajectory remains uncertain, with the potential for both upward movement and significant declines in the near future.