With Bitcoin struggling to maintain above $65,000, a cryptocurrency expert warns of a potential price collapse.
Alan Santana, an experienced cryptocurrency analyst, shared his views on TradingView, indicating that Bitcoin is not in its optimal technical condition. He emphasized the formation of a double top on January 21st and XNUMX, typically signaling a shift from a bullish to a bearish trend, exacerbating negative sentiments within the cryptocurrency space.
The analyst further noted that declining trading volumes suggest waning investor interest, which could further depress prices, potentially setting new lows for Bitcoin.
He indicated short-term support around $62,470, with a critical zone at $59,883. The last significant low was recorded at $56,552. The analyst suggests that Bitcoin appears poised to retest this area, potentially falling to $55,000, $52,000, or even $50,000 in the short term.
Additionally, Santana anticipates significant volatility from January 23rd to XNUMX, which could lead to substantial price fluctuations.
“The recent price action shows clear rejections. Bearish signals continue to accumulate, potentially indicating an upcoming new bottom.”
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Bernstein suggests that major financial institutions will begin accepting Bitcoin. If it drops below $59,856, Bitcoin may directly fall to the previous low of $56,562. Breaking out of the descending channel could imply a potential trend reversal, contingent upon surpassing the resistance line at $67,485.
Santana’s analysis aligns with the prevailing sentiment towards Bitcoin following its failure to reach $70,000.
At the time of writing, Bitcoin trades around $65,430, with minor daily losses. Weekly charts suggest a more dire situation, with cryptocurrencies falling over 4%. This week has proven challenging for Bitcoin, characterized by significant declines and failed recoveries.
The upcoming days are crucial as resistance stands at $67,000, while support remains at $65,000. Failure to maintain these levels could confirm a bearish trend, leading to further price declines.
