Could Bitcoin Price Face a 20% Drop to $76,000 Soon?

The Bitcoin price may experience further declines as a cryptocurrency analyst has issued a concerning short-term forecast. He cautions that another crash might be imminent, predicting a potential drop to approximately $76,000, which would represent a 20% decrease from current figures.

Key Takeaways

A crypto analyst predicts a potential 20% decline in Bitcoin price to $76,000.
Current market conditions are bearish, with no signs of a solid price bottom.
The analysis indicates weak trading volume may contribute to ongoing weaknesses.
Historical indicators like MACD and RSI suggest a gloomy outlook for Bitcoin.

Examining the Risk of a 20% Drop in Bitcoin Price

Crypto analyst Roman has alerted the market that Bitcoin might be on the verge of a significant downturn, with his principal target set around $76,000. In a recent post on X, he highlighted that the prevailing market conditions do not indicate a reliable price bottom, and bears appear to have the upper hand.

Roman explained that his pessimistic view stems from observations on the daily timeframe, where Bitcoin has faced challenges regaining strong upward momentum following a substantial correction. He noted that the cryptocurrency continues to trade within a broader bearish trend, indicating the market could simply be experiencing a temporary pause before another downward shift.

Bitcoin
Source: Chart from Roman on X

The chart accompanying his analysis shows Bitcoin trading around $90,000, still significantly below the prior resistance point of $96,000. Each attempt to increase prices has been met with resistance, suggesting that sellers are firmly maintaining control over the market.

Roman's chart indicates that an initial decline may occur, potentially bringing prices back to the mid $80,000s, followed by a more profound drop to the range of $78,500 to $75,000. Additionally, the hand-drawn projections highlight a steep drop following a brief rally, suggesting that once support levels break, Bitcoin's decline could accelerate.

Trading volume is another important factor in Roman’s bearish outlook. The chart reveals relatively low trading volume during Bitcoin's recent bounce, a pattern often associated with holiday-driven price increases.

Supporting Evidence for the Analyst's Bearish Predictions

Roman's forecast of a crash to $76,000 builds on earlier analyses where he cited multiple reasons for the leading cryptocurrency's bear market and potential imminent corrections. He referenced historical indicator behaviors to substantiate his current prediction.

The analyst noted that Bitcoin’s Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) were significantly oversold following a nearly 40% drop from its all-time high. The current phase of consolidation has allowed these indicators a chance to reset.

However, Roman perceives the absence of strong buying pressure during this reset phase as a warning. He emphasized that a genuine bullish reversal would require increasing volume and clear indicators of higher highs, neither of which are evident on the daily chart. He also pointed out that Bitcoin's longer-term trend continues to be bearish, characterized by the formation of lower highs within a declining range. He concluded that traders should consider any upward movements as corrective actions rather than indications of a new bull market.

Bitcoin
BTC trading at $90,345 on the 1D chart | Source: BTCUSDT on Tradingview.com