Bitcoin’s Fifth Wave May Not Be Finished Yet: Analyst Predicts Possible Decline to $52,000

Bitcoin is gradually approaching the $70,000 mark, but concerns arise as it nears $64,000. Crypto analyst Tara has raised alarms, suggesting that the fifth wave of Bitcoin's movement might still be in progress, with a potential drop that could see prices dip to $52,000.

Key Takeaways

Bitcoin is currently approaching $70,000, but could face a downturn.
Analyst Tara warns that the fifth wave may not be complete and predicts a potential decline to $52,000.
Technical analysis indicates strong support between $59,900 and $60,500.
The Relative Strength Index (RSI) suggests a possible bullish divergence, signaling a potential end to the downward trend.
The $64,000 level serves as a critical pivot point for Bitcoin’s price movement.

Bitcoin

Support Levels Around $59,900 and $60,500

In Tara's technical analysis, she identified significant support for Bitcoin in the $59,900 to $60,500 range. This observation is drawn from previous swing lows and the formation of a double bottom on the 4-hour candlestick chart. This support area also aligns with deeper Fibonacci retracement levels measured from the highs above $70,000.

The analyst believes that a fall to this support zone could trigger a strong reaction, potentially bouncing Bitcoin's price back up to $64,400, where it might encounter resistance instead of acting as support. However, the rebound could be short-lived. If the overarching fifth-wave pattern continues as predicted, the market may be preparing for one final decline after that retest, possibly down to $52,000.

Bitcoin

Source: Chart from TARA on X

This expected $52,000 level is still subject to adjustments as market movements unfold, but it represents a potential completion point for the wider fifth wave. Notably, Bitcoin maintained its position above $60,000 during February, so aiming for $52,000 is considered a worst-case scenario.

Interestingly, the Relative Strength Index (RSI) on the 4-hour timeframe is declining and nearing oversold levels. Tara recommends traders keep an eye out for a bullish divergence on the RSI during the next drop, as this may indicate an early sign of the corrective phase coming to an end.

Potential Higher Support at $64,000

In recent weeks, the $64,000 region has emerged as a crucial pivot for Bitcoin, switching between support and resistance based on price movements. In her latest update, Tara emphasized that Bitcoin had recently retested the macro 0.5 Fibonacci level at $64,400 as resistance before making an effort to rally higher.

Successfully reclaiming the $64,000 mark would represent a critical step towards reversing the bearish trend in the broader market. As of now, Bitcoin's trading price hovers around $68,220, reflecting a 4% increase over the last day. Nonetheless, the risk of a pullback remains.

Should Bitcoin drop below $64,000 again, it would likely hinder short-term recovery efforts and expose previous support levels at $60,500. Conversely, bullish momentum would be solidified if the price surpasses $70,000.

Bitcoin

BTC trading at $68,508 on the 1D chart | Source: BTCUSDT on Tradingview.com