The latest Bitcoin (BTC) price drop has raised concerns about the cryptocurrency’s upcoming performance, with some analysts warning that BTC’s next key closes could signal the start of another major correction.
Bitcoin Risks Another Major CrashAfter its latest drop, analyst Altcoin Sherpa noted that holding the current levels is crucial, as losing this boundary could quickly send BTC’s price 6%-10% down to the next support area, around $60,000-$62,000.
Several market observers also warned that the cryptocurrency is currently breaking down a crucial bearish formation, which could also trigger a massive crash to newer lows if the price doesn’t bounce soon.
Notably, Bitcoin has been forming a bear flag pattern on the daily timeframe for nearly two months, retesting the formation’s lower boundary on multiple occasions. However, BTC now risks losing this level as support, as it shows multiple concerning signs.
The analyst also emphasized that BTC’s breakdown “is only a matter of when, not if,” cautioning that the flagship cryptocurrency has already broken down of a similar two-month bear flag pattern at the start of the year.
“I’ll be watching these zones for dip-buying opportunities ahead of the next bull cycle,” he stated.
All Eyes On BTC’s Weekly CloseThe analyst previously explained that “If the 200-week EMA is lost as support this week and price Weekly Closes below it again, Bitcoin could actually turn the EMA into new resistance.”
“Given this latest Weekly Close, there is therefore scope for another dip into the 200-week EMA for another retest to see if BTC can solidify a reclaim into support,” he detailed, “But the overall suspicion has become confirmed: The 200-week EMA is acting as both an unreliable resistance and an unreliable support, never truly confirming a clear role.”
As of this writing, Bitcoin trades at $65,600, a 6% decline in the weekly timeframe.
