Originally published on: August 05, 2024
According to analysts, the current downward trend in Bitcoin’s price may continue for nearly two months before a new bullish chart pattern signals a potential breakout. Rekt Capital, a popular analyst, suggests that the Bitcoin price could experience a prolonged downturn based on historical price movements.
The recent crash in Bitcoin’s price dipped below $50,000 after the Bank of Japan announced an increase in interest rates. This decision had a ripple effect on the US stock market and Bitcoin price as traders borrowed Japanese yen at low rates to invest in US assets. As a result, the crypto market saw a significant $510 billion loss in total market capitalization, marking one of the largest sell-offs in over a year.
Despite the current bearish sentiment, there is hope on the horizon with the emergence of a bullish chart pattern. Analysts like Satoshi Flipper and Elja are optimistic about a potential breakout as Bitcoin shows signs of forming a bull flag on the monthly chart.
However, in the short term, Bitcoin’s downtrend could potentially reach as low as $42,000, according to senior market analyst Alex Kuptsikevich. It’s essential for investors to conduct their research and risk assessment before making any investment or trading decisions.
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