Bitcoins next step Prepare for the major decline at this juncture
The global cryptocurrency market capitalization presently stands at $2.36 trillion, registering a decline of 2.6% over the past 24 hours. Against this backdrop of market fluctuations, Bitcoin (BTC) has encountered varied responses from technical indicators, prompting concerns among investors about its recovery prospects.
Trading analyst Alan Santana, noted on TradingView, recently projected that Bitcoin may be approaching a significant downturn, known as an SD-Wave or SSD-Wave. An SD-Wave, or Super-Down-Wave, typically results in a price drop of 20-30%, while an SSD-Wave, or Surprise-Super-Down-Wave, could lead to a more severe decline of up to 50%.
Current analyses lean towards the likelihood of an SSD-Wave, urging caution among investors.
The BTC/USD chart illustrates a notable decline in trading volume over the past four months, indicating weakening buying momentum, often a precursor to significant downward movement. This reduced interest in buying at current levels suggests potential for further declines. Consequently, bearish sentiment and declining volume may cause historical support levels to fail, triggering additional price drops.
The downtrend visible on the chart shows a continuation of bearish sentiment, with the price consistently struggling to break above this trendline. Until there is a clear breakthrough above this resistance, the bearish outlook persists.
Key levels and strategies for navigating the downturn can be gleaned from the BTC/USD chart, providing crucial insights for investors.
The support range around $57,500 from March 2024 has historically been robust and could act as a temporary buffer against significant declines. However, breaching this level would indicate a deeper downturn. Additionally, altcoin correlations suggest a projected level around $40,000, as movements in altcoin prices often parallel Bitcoin’s trajectory. A drop to this level would signal a severe market downturn, potentially triggering broader declines across the cryptocurrency market.
Further compounding this scenario, the January 2024 support level near $35,000 holds critical historical significance and could become relevant in the event of an SSD-Wave. Breaching this level would suggest a prolonged downtrend, a possibility highlighted by significant declines already observed in many altcoins, which often serve as leading indicators for Bitcoin’s direction.
As of the latest update, Bitcoin is trading at $59,780, reflecting a 4% decline on the daily chart and a 12% decline on the monthly chart. Despite attempts at recovery, the market sentiment remains mixed.
Current analyses advise investors to brace for a potential significant drop in the coming weeks, with critical support levels at $57,500, $40,000, and $35,000 warranting close monitoring. It is imperative for investors to stay informed and adapt their strategies accordingly, paying close attention to market dynamics and key support levels to mitigate potential risks.
Disclaimer: The information provided does not constitute investment advice. Investment in cryptocurrencies carries inherent risks, and investors should exercise caution and conduct thorough research before making decisions.
