Bitcoin Weekly Close Approaches as Price Falls Below $66,000 – A 45% Crash on the Horizon?

Bitcoin, crypto, solana

Bitcoin's (BTC) recent decline has sparked worries among investors about its potential future performance. Some analysts are cautioning that the upcoming significant price closes might indicate the onset of another substantial correction.

Concerns About Bitcoin's Possible Major Decline

On Friday, Bitcoin experienced a downturn of over 7%, hitting a three-week low of $65,700. This decline has raised alarms regarding the flagship cryptocurrency's short- and medium-term outlook. Since suffering a significant drop in early February, Bitcoin has been fluctuating between the $65,000 and $72,000 range.

Following this latest downturn, analyst Altcoin Sherpa emphasized that maintaining the current levels is essential. If Bitcoin fails to hold this range, it could swiftly drop another 6% to 10%, heading towards the next support zone between $60,000 and $62,000.

Bitcoin BTC is at risk of initially falling to $62,000. Source: Altcoin Sherpa on X

Several market analysts have pointed out that Bitcoin is presently breaking down from a crucial bearish formation, raising the possibility of a severe crash to lower prices if the price does not recover soon. Over the past two months, Bitcoin has been establishing a bear flag pattern on the daily chart, repeatedly testing the pattern’s lower boundary. However, the cryptocurrency now seems to be at risk of losing this support level, showcasing several alarming indicators.

According to Ted Pillows on X, Bitcoin is not just declining in price; it is also losing momentum, having broken its RSI uptrend. He noted, “This is a significant sign of weakness.” He further stated that BTC's breakdown is more about timing than possibility, as the cryptocurrency already underwent a similar two-month bear flag breakdown earlier this year.

In addition, Ali Martinez forecasted that Bitcoin could plummet another 30% to 45%, drawing on its historical performance from the last decade. He explained that Bitcoin has typically entered new bullish trends following dips below its long-term holder realized price and its −0.2 standard deviation band, which are positioned at approximately $48,387 and $36,657, respectively. “I’ll be monitoring these price zones for potential buying opportunities ahead of the next bull cycle,” he added.

Focus Shifts to Bitcoin's Weekly Close

Analyst Rekt Capital pointed out yet another troubling sign for Bitcoin, highlighting that BTC has again fallen below the 200-week Exponential Moving Average (EMA). In light of this drop, the cryptocurrency is once again treating this benchmark as resistance, heightened anticipation surrounds the forthcoming weekly close.

Previously, the analyst clarified that “If Bitcoin loses the 200-week EMA as support this week and closes below it, the cryptocurrency might transform the EMA into new resistance.” Last week, Bitcoin, the largest cryptocurrency by market capitalization, technically closed beneath the 200-week EMA after failing to secure a position above the $68,000 mark. “This indicates that the price has effectively begun a breakdown from the EMA,” and a weekly close below this threshold would reaffirm this sentiment.

“Given the recent Weekly Close, there might still be a chance for another decline towards the 200-week EMA for a retest to determine whether BTC can establish a reclaim as support,” he noted. “However, the overall conclusion has now been confirmed: The 200-week EMA has emerged as both unreliable resistance and support, never clearly defining its role.”

The analyst concluded that this indecisiveness could lead to further retests of this level “before ultimately descending into additional Macro Downside over time.” As this article is being written, Bitcoin's price is at $65,600, reflecting a 6% decrease over the week.

bitcoin, btc, btcusdt Bitcoin’s performance over the past week. Source: BTCUSDT on TradingView

Key Takeaways:

Bitcoin has recently dropped below $66,000, signaling potential further declines.
Analysts indicate that if Bitcoin fails to hold current support levels, it could face a decline of 6% to 10%.
The cryptocurrency is currently in a bear flag pattern, raising concerns about its future.
Significant technical indicators suggest a possible drop of 30% to 45% based on historical data.
Analysts are closely watching the upcoming weekly close, as falling below key moving averages could indicate further negative trends.