Technical analysis of the cryptocurrency market points out new risk signals for Bitcoin. Cryptocurrency analyst Ai (@alicharts) announced in a post on X (formerly Twitter) that Bitcoin’s 10-week moving average and 50-week moving average have crossed again. According to the analyst, this technical formation has signaled a strong correction many times in the past.
Historical data shows that this moving average intersection was followed by a sharp decline in Bitcoin price. For example, in September 2014, Bitcoin lost about 67% of its value after this signal. In June 2018, prices at a similar intersection fell by 54%. During the global market crash in March 2020, Bitcoin fell by 53%, but in January 2022, a sharp correction of 64% was recorded.
Ai said Bitcoin could experience a 50% to 60% decline if historical patterns repeat. In such a scenario, the price of major cryptocurrencies could drop from $38,000 to $50,000. The analyst emphasizes that this forecast is not a final forecast, but a probabilistic analysis based on past price trends.
Market experts say short-term and medium-term investors in particular should monitor this technical signal closely. However, factors such as increased institutional interest, ETFs, and macroeconomic developments may limit the depth of potential adjustments. Investors are advised to be aware of increased volatility risk and prioritize risk management.
*This is not investment advice.
