Bitcoin’s short-term outlook continues to appear negative as volatility mounts in the general crypto market. Over the past few days, the digital asset has dropped as high as 11% since reaching a new all-time high, triggering speculation within the community about an extended price correction to previous support levels.
Is Bitcoin Due For A Prolonged Price Pullback?
The recent bearish performance of Bitcoin may extend significantly in the upcoming days. Crypto expert and Market Sniper trading bot creator Jesse Olsen has highlighted past patterns suggesting that BTC might be on the verge of a huge price pullback.
According to the market expert, Bitcoin could drop as much as 30% in the following days. Drawing parallels to past cycle trends, Jesse Olsen highlights that these kinds of corrections are typically during significant uptrends.
Specifically, Olsen foresees a notable pullback as Bitcoin undergoes a bearish crossover on the Moving Average Convergence Divergence (MACD) indicator. This is because Bitcoin’s price experienced at least a 30% correction the last 3 times the MACD indicator had a bearish crossover on the 3-day chart at high levels.
As price fluctuates, the analyst has pointed to four key levels to watch out for, such as $92,000, $85,000, $80,000, and $70,000, once BTC’s downtrend extends. Should BTC hit 4 out of 4 targets, this implies that the crypto asset could drop to the $70,000 range.
Given that Bitcoin’s long-term outlook remains bullish, the anticipated correction may offer a positive reset for the market. Furthermore, it could provide an opportunity for new investors to purchase BTC before resuming its upside momentum toward previous resistance levels.
Olsen’s prediction also aligns with that of senior analyst at the CoinDesk news outlet James Van Straten, who forecasts a similar level of pullback in the upcoming days. The analyst cites several important support levels in determining Bitcoin’s next direction.
After examining the BTC’s Entity-Adjusted URPD metric, Van Straten claims that $90,000 is the next key support point for the digital asset. With no support established at this point, the $75,000 threshold could be feasible once BTC loses the $90,000 support point. Thus, the move from $90,000 to $75,000 marks the much-expected 30% pullback completion.
BTC At A Critical Moment
Despite ongoing market volatility, BTC has formed the most crucial trendline. Titan of Crypto, a market expert, considers the trend the most crucial for BTC as its next direction hinges on a breakthrough from the line.
Given the significance of the development, the expert claims there is no cause for alarm as long as it stays above this trend line. Even though the monthly candle does not now appear bullish, one week remains before it closes, suggesting a possible resurgence.
Presently, Bitcoin has dropped by over 2% in the past day to $93,977. Its daily trading volume is showing a rising optimistic sentiment among investors as it increases by nearly 6%.
Featured image from Unsplash, chart from Tradingview.com
