With the Bitcoin price clearing $78,000 last week, it has triggered bullish sentiment in the crypto market once again. This move has also led to forecasts that the Bitcoin price is headed back for the 6-figure mark. However, not everyone is following this school of thought and believes that the rally will continue. Crypto analyst Behdark has debunked the bullish predictions, forecasting that the cryptocurrency’s price is actually headed lower before recovering.
How Low Will The Bitcoin Price Go?
Despite the increase in price, the crypto analyst has predicted that it is likely that the Bitcoin price crashes first from here. The bullish sentiment in the market, Behdark believes could be misleading for investors, as this could be a deliberate ploy by market makers to actually get the most people involved before crashing the price again.
As the analyst explains, the underlying Bitcoin structure is still very bearish, especially given the fact that the digital asset looks to be forming a triangle or diamagnetic pattern. The latter is a complex corrective pattern, meaning that it can often be clouded in recoveries before crashing down further again.
In either case, both of these patterns point to a high possibility that the Bitcoin price would go down first before up. Thus, it is likely that there would be opportunities to buy the cryptocurrency lower before eventually waiting for the run-up.
With this, the crypto analyst has identified the major levels that investors should watch out for that could be the best time to actually short the cryptocurrency. Mainly, two levels are of the most interest as these are where the bears could make their stand in terms of establishing resistance.
The first of these is just above $77,000 as the price continues to struggle with declining momentum. Next is the $80,552 level, where there is likely the most resistance to the current rally, thus making them the points that could trigger a downward corrective move.
Once the decline begins, then the first stop would be just above $72,800 for the first support level. Next is the $67,885 level for better support, but a break of this would eventually lead to another 10% crash. The last major level is $67,677, which still lies above the established cycle support of $60,000.
Featured image from Dall.E, chart from TradingView.com
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