While Bitcoin struggles to stay above $65,000, a crypto expert warned of a possible price collapse.
Alan Santana, an experienced cryptocurrency analyst, shared his thoughts on TradingView about how Bitcoin is not in the best technical situation. He emphasized that a double top was formed on May 21, as well as in June. This usually happens before a trend reverses from bull to bear, contributing to negative sentiments in the crypto space.
The analyst also pointed out decreasing trading volumes, indicating weak interest from investors, which could further push prices down, leading to a new low for Bitcoin.
He shared that short-term support levels are around $62,470 and a critical zone at $59,883. The last significant low was registered at $56,552. It appears that Bitcoin may retest this zone again with potential even steeper declines towards $55,000 or $52,000, or perhaps even $50,000 in the short term.
Additionally, Santana forecasted high volatility on June 21-23, which could lead to significant price fluctuations.
“The recent price action clearly shows rejection. Bearish signals continue to accumulate, which could mean a new low is looming on the horizon.”
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If it falls below $59,856, then Bitcoin could head straight towards its previous low at $56,562. Breaking above the descending channel could indicate a potential trend reversal, but first the resistance line at $67,485 must be overcome.
Santana’s analysis aligns with the overall sentiment for Bitcoin after the cryptocurrency failed to reach $70,000.
At the time of writing, Bitcoin is trading around $65,430 with a small daily loss. The weekly chart looks worse, with the cryptocurrency dropping by more than 4%. Suffice it to say, this is a tough week for Bitcoin, characterized by significant declines and unsuccessful recoveries.
The upcoming days will be crucial, as the resistance zone will be at $67,000, while the support level remains at $65,000. If Bitcoin continues to stay below these levels, it could confirm a bearish trend that could lower the price.