Market analysts are projecting further downsides for Bitcoin (BTC) in the coming days after the flagship cryptocurrency suffered sudden losses as risk assets react to escalating geopolitical tensions in the Middle East.
In this context, market participants were hoping for Bitcoin to hold above the $70,000 mark, acting as an anchor for another potential record high, possibly surpassing the $100,000 mark.
Regarding the next trajectory, crypto analyst Alan Santana pointed out in a TradingView post on April 14 that Bitcoin’s recent downturn may be just the beginning of a more substantial correction.
Santana’s analysis, based on the monthly timeframe, noted that April marks the first time in Bitcoin’s history that it has experienced seven consecutive months of growth. However, with the month only halfway through, the expert suggested that a correction is imminent following such an extended bullish phase.
The analysis indicates that Bitcoin’s correction could lead to significant price drops, with Santana setting a minimum target of $48,000 based on the monthly timeframe. He emphasized that while short-term bounces may occur, investors should prepare for sustained downward pressure.
Price targets to watch
Moreover, the analysis identified vital support levels to monitor during Bitcoin’s descent. The exponential moving average (EMA) at $40,000 (EMA21) and $30,550 (EMA50) are highlighted as crucial levels where Bitcoin could find reprieve or potentially establish stronger support.
“For Bitcoin to close green, it would need to end the month above $71,300. Since we know this is the month that Bitcoin turns red, based on current action, we know that the remaining weeks can result in more lows, lower lows and lower prices as the correction unravels,” he said.
As things stand, Bitcoin has support at the $60,000 mark and resistance at $65,000, with the market partly divided on what to expect. For instance, economist Peter Schiff, in an X (formerly Twitter) post on April 14, further cautioned that Bitcoin’s recent drop could point to additional losses in the coming days.
The Bitcoin skeptic suggested that a breach of the critical $60,000 support level could lead to a sharp decline to $20,000 and see institutional investors such as MicroStrategy incur significant losses.
“$60K is critical support for #Bitcoin. A decisive break below that level will create a formidable triple top. The immediate downside projection is a move to $20K. At that price $MSTR will have a $2.7 billion unrealized loss on 214K Bitcoin acquired at an average price of $34K,” he said.
Bitcoin price analysis
By press time, Bitcoin was trading at $63,838, marking a loss of over 5% in the last 24 hours. On the weekly timeframe, the flagship cryptocurrency has shed nearly 8%.
Despite the market projecting a bearish outlook for Bitcoin, it’s noteworthy that the asset still possesses key bullish catalysts, with the upcoming halving ranking at the top. In the short term, it will be essential to monitor how geopolitical tensions unfold in the Middle East.
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