The recent drop of more than 10% in the price of Bitcoin (BTC) took by surprise the market that was celebrating the rise of cryptocurrencies to more than $52,000.
So, while analysts pointed out that the BTC’s return, the brand placed $50,000 as support and foundation for a new historic high.
However, that’s not what happened and Bitcoin dropped below $43,000 although it regained some of its loo value afterward.
So, as the market tries to understand what led to the fall of the BTC, the popular analyst of cryptoactives, Justin Bennett, points out that the worst is yet to come and, with that, Bitcoin should fall even more.
So Bennett expects the BTC to retest $40,000 before starting a new bullish cycle.
“I doubt the retreat is over. Everything closed below key support on Tuesday. Unless we see markets closing above these levels, I’m thinking the BTC revisits $40,000. It is a weekly level that has not yet been tested as new support. a lot of confluence [de Fibonacci] to support this idea,” he said.
So who agrees with Bennett are the FX Street analysts, who highlighted that there is more possibility of a fall for the BTC than a new high in the short term.
Therefore, analysts say bears are unlikely to find resistance to pushing Bitcoin below $45,000 again.
“In other words, it’s easier for Bitcoin to move down than up, but we expect a Strong support between $40,000 and $41,000 due to the 38.2% Fibonacci retracement,” the company said.
Analyst Rakesh Upadhyay is also not optimistic about the Bitcoin price and believes it is unlikely that bulls will be able to push the BTC value above $50,000 again in the near term.
“The Relative Strength Index (RSI) has dropped below 47 and the 20-day EMA has started to decline, indicating that bears are back in strength. If the price falls in the 20-day EMA, the bears will try again to sink the pair below $42,451.67. If that happens, the pair may enter a deeper corrective phase,” he said.
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