The Bitcoin price is still ping-ponging between support and resistance but is currently showing favorable signs for the bulls, as it maintains its position well above the psychological threshold of $100,000. This pivotal level could significantly influence whether the market trends towards a bull or bear movement. In the midst of these fluctuations, crypto analyst Xanrox has expressed concerns regarding a potential downward trend for Bitcoin, especially after it recently reached an all-time high of nearly $112,000. According to his analysis, this impending downtrend could adversely affect altcoins.
Why The Bitcoin Price Is Breaking Down
Xanrox outlines that the decline in the Bitcoin price can be attributed to its breakdown out of an ascending parallel channel formed during the price movement from $74,000 to $112,000. This initial downtrend saw Bitcoin drop from $111,000 to $103,000 before experiencing a temporary relief rally.
Moreover, the analyst highlights the significance of a symmetrical triangle formation within the ascending channel. Such triangles have a reputation for sweeping liquidity, and while these sweeps can be two-sided, they are noteworthy as they can influence market direction based on whether bulls or bears currently dominate.
Additionally, Xanrox mentions that Bitcoin has completed five waves of the Elliott Wave theory. Following this completion, a corrective ABC wave is anticipated, suggesting a further decline to the 0.382, 0.500, and 0.618 Fibonacci retracement levels.
Where To Start Buying
With the expectation of a drop to the Fibonacci levels of 0.382, 0.500, and 0.618, the first target for Bitcoin’s price is just below $98,000. At this level, Xanrox believes it will be an opportune moment for investors to start buying. Besides chart patterns, the analyst references an unfilled Fair Value Gap (FVG) at this level, which presents a prime opportunity for purchasing before the anticipated upward movement resumes.
Should this anticipated decline occur, it may also lead to a further downturn in altcoins, which are already hovering near all-time low levels. After the initial FVG is filled, if market momentum remains weak, the second Fibonacci level at 0.500 could pull Bitcoin’s price down to around $92,000.
Lastly, the third Fibonacci level at 0.618 projects a potential decline to approximately $87,500. “It’s advisable to consider buying opportunities around the 0.382, 0.500, or 0.618 Fibonacci levels,” the crypto analyst indicates.
