Bitcoin Continues to Show Bearish Trends, Price Likely to Fall Below $50,000, Says Analyst

Summary: Despite a recent price surge above $70,000, Bitcoin's price trajectory is still bearish, according to several analysts. Key analyst HAMED_AZ suggests that further price drops could bring Bitcoin below the $50,000 threshold.

Key Takeaways

Bitcoin's price is currently bearish, trading within a descending channel.
A significant resistance level exists around $79,000-$82,000.
A potential price drop of 40% could bring Bitcoin down to approximately $47,000.
If Bitcoin surpasses $82,000, it may indicate a possible trend reversal controlled by bulls.

Bitcoin

Current Bearish Outlook for Bitcoin Price

Analyst HAMED_AZ argues that Bitcoin's recent uptick above $70,000 does not fundamentally change the bearish outlook. Despite this temporary relief, many in the market believe the true bear market is looming. The concerning trend is reinforced by Bitcoin's trading within a descending channel on the daily chart. Following a dip below the support level of $79,000, bullish sentiment has significantly weakened.

Currently, the price has not yet retested the previously supportive level, which has now turned into resistance. This indicates a lack of strength from buyers. Moreover, this zone aligns closely with the 0.5 Fibonacci retracement level, making it crucial for predicting the next market movement.

If Bitcoin's price remains below the $79,000-$82,000 range, it could face rejection and lead to a further decline. This area is predominantly underbear control.

Future Price Expectations

Should Bitcoin experience a price crash, HAMED_AZ estimates a potential decline of around 40%, which would send the price below $50,000. This would place the low point around $47,000, representing a substantial drop of nearly 60% from its all-time high.

HAMED explains, "If the price reaches this level and demonstrates signs of resistance or waning bullish momentum, the market may endure a bearish rejection, further perpetuating the ongoing downtrend within the channel." He emphasizes that as long as prices remain beneath the supply zone and the upper boundary of the descending channel, a continuation of the bearish trend is likely after any pullbacks.

Bitcoin Price
Source: TradingView

On the contrary, there exists a possibility for bulls to regain control if Bitcoin manages to break above the $82,000 mark. This would allow for a movement to the upper boundary of the descending channel and potentially indicate a trend reversal.

Bitcoin Price Chart from Tradingview.com
BTC maintains support at $74,000 | Source: BTCUSD on Tradingview.com