Bitcoin Price Analysis: Top Trader Warns of an Imminent BTC Correction – Here’s Their Outlook

Bitcoin’s price movements have always been a subject of intense analysis. Trader Alan Santana offered a comprehensive analysis of Bitcoin’s current state on TradingView lately. Despite some notable developments in the market, the analyst notes that bearish signals continue to dominate, suggesting that a correction might be imminent.

Market Signals and Recent Trends

Santana notes that the chart reveals a clear pattern: lower highs and almost three months of bearish consolidation. This period, known as the distribution phase, often precedes a drop. Notably, despite the SEC’s approval of multiple Ethereum Spot ETFs, the market failed to respond positively, reinforcing bearish sentiments. When positive news fails to push prices higher, it is generally a negative sign.

Bitcoin’s recent performance has been characterized by lower highs and decreasing volume as noted by santana. This trend suggests that bearish expectations remain valid. The latest price data from Coingecko shows Bitcoin trading at $71,148.04, reflecting a 0.24% and a 3.76% rise over the last day and week, respectively. However, this slight upward movement does not negate the overall bearish outlook.

Celebrate Dogecoin and Make Big Gains with Doge2014!

Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!

Show more +

Bitcoin (BTC) Price Analysis

Santana’s analysis highlights the duration of Bitcoin’s latest bullish wave, which lasted 479 days (16 months) from November 2022 to March 2024. Market analysts often note that bearish waves tend to unravel much faster than bullish waves, typically occurring 2 to 2.5 times quicker. If the bullish wave lasted 16 months, the bearish correction could unfold in a significantly shorter period.

The reason for this rapid decline lies in market behavior. During a bullish wave, investors build positions slowly, enjoying steady growth and profits. Conversely, when a correction begins, investors either prepare in advance or sell rapidly once they realize the upward potential is exhausted. This quick liquidation accelerates the downtrend, making bearish waves faster than their bullish counterparts.

The Current Market Sentiment

Despite some positive news, the market’s failure to rally indicates a strong bearish sentiment. Bitcoin’s lower highs and decreasing volume signal that the market is likely preparing for a correction. The SEC’s approval of Ethereum Spot ETFs, which typically would be bullish, did not stimulate notable price movement. This lack of response underscores the prevailing bearish mood.

Furthermore, historical patterns suggest that a bearish wave could unfold rapidly. Investors’ tendency to liquidate positions quickly during a downturn contrasts with the slow accumulation during bullish periods. This behavior contributes to the faster pace of bearish corrections, which could soon impact Bitcoin.

Read also: Here’s Why BEAM, Fetch.ai (FET), and dogwifhat (WIF) Are Cryptos to Avoid This Month

The current analysis by Trader Alan Santana suggests that the market is still expecting a correction. The combination of lower highs, decreasing volume, and the market’s tepid response to positive news all point towards a bearish outlook. Bitcoin’s current price movements and market signals indicate that a correction may be on the horizon. 

Join Aethir’s exclusive airdrop and earn badges by participating in events or holding community tokens. Complete tasks and secure your spot before the snapshot date is revealed!

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Samuel Munene
Samuel Munene

Samuel is a vesatile and seasoned content editor with a sharp eye for detail and a passion for writing. Web3 techonology is the future! With massive experience in the publishing industry, I specialize in refining and enhancing written material to ensure clarity, coherence, and engaging narratives.

CaptainAltcoin
Logo