Why Bitcoin’s Drop to $50,000 is Predicted, Analyst Clarifies

Analyst Cheeky Crypto recently shared their Bitcoin price forecast, which may not be well-received by everyone. According to the analyst, the charts suggest a bearish setup in the short term, with lower highs and lower lows. The analyst highlighted that the market is currently in a ranging phase, with a specific range targeted and a recent relief rally discussed. However, there is uncertainty about reaching resistance levels around $68,000 to $69,000.

Although the analyst sees the current movement as a potential three-wave pattern, indicating a short-term correction followed by a medium-term increase towards $68,000, they cautioned that if Bitcoin is rejected at this level, it could experience significant downside movement.

The analyst emphasized the significance of the 200-day exponential moving average (EMA) as a crucial indicator for Bitcoin’s health. They explained that if Bitcoin breaks above $73,777, it would invalidate the bearish structure. However, if Bitcoin faces rejection at $68,000 to $69,000, the analyst expects the 200-day EMA, currently at around $50,741, to be the next target. They predict that Bitcoin could find support in the range of $52,000 to $55,000.

While the analyst previously mentioned a $50,000 target, they noted that the prediction is evolving with each daily candle as the 200-day EMA continues to rise. They anticipate a temporary increase followed by a downturn, with the 200-day EMA serving as a key trend filter in the upcoming weeks. The stochastic RSI also suggests overbought conditions, indicating a possible shift in momentum towards the downside.

Furthermore, recent developments such as the approval of Bitcoin and Ethereum ETFs in Hong Kong and potential fee reductions for the grayscale mini Bitcoin spot ETF could further contribute to supporting Bitcoin’s price in the future.

Tags: Bitcoin