New York, Monday, November, 2024-In a warning to investors, cryptocurrency expert Alan Santana has highlighted signs that Bitcoin (BTC) may be heading for a significant downturn after failing to surpass its previous all-time high.1
The leading cryptocurrency is currently consolidating below the $70,000 resistance level, raising concerns about its future performance.
Santana claims that Bitcoin has experienced five consecutive red days, a rare occurrence since May 2023, indicating potential trouble ahead.
He described the current chart pattern as a “rounded top” or “inverted cup,” often seen as a bearish reversal signal. According to Santana, a critical support level around $69,000 is crucial; a breach below this point could confirm a bearish trend, possibly pushing Bitcoin down to $40,000.
Acknowledging some room for recovery, he noted that the failure to achieve a new all-time high near $73,800 reflects underlying weakness in the market. The recent performance, coupled with a broader downturn among altcoins, has led Santana to forecast Bitcoin may be poised for its “biggest crash in years.”
In addition, analyst Ali Martinez also supported this bearish outlook, indicating that Bitcoin’s weekly chart shows signs of rejection at higher levels, suggesting that upward momentum is waning.
This cautious sentiment follows Bitcoin’s strong monthly close in October, where it briefly surpassed $70,000, raising hopes of a surge toward the $100,000 mark.
A bull trap in cryptocurrency occurs when the price of a digital asset appears to rise, leading investors to believe it will continue upward. This creates a buying frenzy, but the price suddenly drops instead, catching many off guard. A bull trap misleads investors into thinking there is a strong upward trend when there is not, often resulting in significant losses.
- finbold.com: https://finbold.com/expert-warns-bitcoin-will-witness-the-biggest-crash-in-years-after-bull-trap/[↩]
