Last week, the price of Bitcoin surpassed $78,000, sparking bullish sentiment once again in the cryptocurrency market. There were also predictions that this move would cause the Bitcoin price to return to the six-digit range. However, not everyone follows these ideas and I believe the rallies will continue. Crypto analyst Behdark debunked the optimistic forecast, predicting that cryptocurrency prices will actually fall before recovering.
How low will the price of Bitcoin go?
Despite the price rise, cryptocurrency analysts predict that Bitcoin prices will likely plummet first from here. Behdark believes that bullish sentiment in the market can be misleading to investors. Because this may actually be a deliberate ploy by market makers to get the most people involved before prices crash again.
As the analyst explained, the underlying Bitcoin structure is still very bearish. This is especially true considering the fact that digital assets appear to form triangular or diamagnetic patterns. The latter is a complex correction pattern, meaning the recovery may fizzle out before falling again.
In either case, both of these patterns indicate that Bitcoin price will likely fall first before rising. Therefore, there is likely to be an opportunity to buy the cryptocurrency lower before eventually waiting for it to rise.
With this, the cryptocurrency analyst has identified key levels that investors should watch out for as this could actually be the best time to sell cryptocurrencies. Mainly two levels are of most interest because this is where the bears can take a stand in terms of establishing resistance.
The first is just above $77,000 as the price continues to struggle with downward momentum. Next is the $80,552 level, which is expected to provide the most resistance to the current rally and could trigger a downward move.
If the decline begins, the first support level will be just above $72,800. Next is the $67,885 level for better support, but if this breaks we will eventually see another 10% crash. The last major level is at $67,677, which is still above the existing cycle support of $60,000.
Featured image by Dall.E, chart by TradingView.com
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