Bitcoin’s (BTC) attempt to recover and reclaim its all-time high above $73,000 is facing hurdles, with the asset currently trading below the $70,000 mark amid anticipation ahead of the halving event. Recent price movements have led to Bitcoin’s bearish price predictions, with a section of the market suggesting the outlook is part of the pre-halving retrace.
For instance, cryptocurrency trading expert Alan Santana, in a TradingView post on March 23, warned investors to brace for a sell-off, noting that Bitcoin’s bearish bias remains strong.
With Bitcoin struggling to breach the $65,000 resistance, Santana forecasted a continued downward trajectory for Bitcoin over the coming days or even weeks. This downward movement is anticipated to follow a pattern of bottom formation, accumulation, and reversal signals before any potential recovery.
As per the analyst, Bitcoin has consistently traded above the exponential moving average 21 (EMA21) daily, confirming a bearish sentiment in the market. Santana projected that the next target for Bitcoin would be around $59,000 in the short term, with a swift breach of this level expected. The subsequent levels to watch out for are $55,000, with a possible floor as low as $51,000-$53,000.
“Just keep in mind that the first crash will be fast and some 20-30% will disappear to not comeback for 6-8 months,” he said.
Bitcoin’s levels to watch
Examining Bitcoin’s short-term trendlines, the trading expert observed that the cryptocurrency is currently confined within a bearish territory, indicating a prevailing negative sentiment among traders.
For a shift towards bullish momentum, Bitcoin would need to surpass and close above $68,500, with a preliminary positive indication being a move above $66,666.
“For bullish potential to be considered or go back into play in this chart setup, Bitcoin needs to move and close above $68,500. Moving and closing above $66,666 is a good start. Any trading below $65,000 and the bearish bias remains strong while we wait for lower prices,” he added.
In recent days, Bitcoin has experienced heightened volatility, briefly reaching close to $60,000. Analysts attribute this correction in part to overheated market conditions, labeling it a “pre-halving retrace” as the Bitcoin halving event approaches in approximately 30 days.
At the same time, market observers suggest that the volatility is also influenced by outflows from spot Bitcoin exchange-traded funds (ETFs), which have seen consecutive days of money being withdrawn.
Bitcoin price analysis
By press time, Bitcoin was trading at $64,5700 with losses of almost 5% in the last seven days. It is worth noting that earlier in the week, Bitcoin briefly touched the $68,000 mark before correcting.
Overall, Bitcoin’s price remains at a crucial juncture as it faces the challenge of reclaiming $65,000. Continued trading below this mark would render it vulnerable to losses below $60,000.
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