Hong Kong's Bitcoin and Ethereum spot ETFs disappoint, observers complain. No wonder bitcoin continues to struggle to recover, losing around 4% at the start of the week. A question remains: how low can the price of bitcoin go?
Bitcoin falling: How low will it go?
Despite the hopes ofa bull run after the halvingbitcoin is slow to take off, undermining the optimistic forecasts of Robert Kiyosaki, author of “Rich Dad, Poor Dad”, and his friends in finance, who were counting on a bitcoin worth 100,000, or even 1 million dollars, in the near future. It would appear that a revision of these forecasts is necessary.
The price of bitcoin is in free fall! The current correction is part of a descending bevel pattern, with two trendlines converging at an estimated high point of around $54,000. According to the analystsbitcoin could fall towards this level by June if the current trend continues.
There bevel target descendant is located around $63,880, which represents an increase of approximately 3.5% from current price levels. In other words, every dip could provide a buying opportunity.
However, some forecasters are less optimistic. Peter Brandta veteran trader, believes that the price of bitcoin could plunge towards the $40,000 to $50,000 range. According to him, bitcoin failed to surpass its previous highs despite the halving and ETFs. He even predicts a dip towards the “first 40 years” followed by a recovery.
Brandt relies on a descending triangle which developed after bitcoin failed to reclaim its previous high of $69,000. He warns that if bitcoin crosses the lower trend line of the triangle, it could fall towards $48,550a drop of more than 20% compared to current price levels.
Fractal 2021 indicates increased pain
From a technical point of view, the recent correction in the price of bitcoin is accompanied by a decline in the weekly relative strength index (RSI), which left its overbought zone. This move took the RSI below a multi-month ascending trendline, reminiscent of the trend before a sharp price correction in 2021.
In 2021, BTC had fallen towards its 50-week EMA (the red wave), opening the possibility of a repeat of the same pattern in 2024. The BTC decline target is therefore around $46,110 by June, level corresponding to the 0.618 Fibonacci retracement line.
A significant break below the 50-week EMA could send the price towards the 200-week EMA, around $32,410, a decline of approximately 58% from current price levels.
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