Bitcoin, the largest cryptocurrency by market capitalization, has plunged to its lowest level since 2021 when it dipped below $35k for the first time in six months. As BTC Price has yet to find strong support below $40,000, analysts believe the worst is yet to come.
Dave the Wave, a pseudonymous crypto analyst, is well-known in the industry for being one of the few to predict the May crash. When the price of digital assets like bitcoin skyrocketed last year, Dave was one of the first to warn of impending price collapse.
Shortly after, the market had a price crash that resulted in a 50% downward correction. This time, the analyst has released yet another warning statement. Dave the Wave lays up their view on the bitcoin market using numerous charts. What is the prognosis? It’s feasible that the price will continue to fall until it reaches $25,000 or lower.
Dave the Wave told their 90K Twitter followers what he expected from the market throughout the course of several tweets. He started by looking at the Fibonacci extension. After calculating its potential head and shoulders, a downside of $25,000 was determined.
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The analyst also pointed out that bitcoin had already breached a key support level. Under these conditions, there is little support, implying that the price of the digital asset is likely to continue to fall. “The issue is that once it loses that 40K region, there isn’t a lot of support below,” the analyst explained.
As of the time of writing Bitcoin has gained more than 9 percent and is trading at $36,525. The crucial resistance level would be at $40k. Once the bulls push the price above that level, a rally can be confirmed. Right now the flagship currency is almost 50 percent down from its ATH set last year.
