Bitcoin’s Bearish Signals Suggest Potential for Prolonged Correction: Analyst Cautions That BTC is Set to Move Lower
Bitcoin is showing signs of a potential prolonged correction. According to a recent technical analysis by Alan Santana, the weekly candlestick chart reveals several bearish signals that could indicate a significant shift in market sentiment.
What you'll learn 👉
Consecutive Red Weeks and High Volume
One of the most notable observations from Santana’s analysis is that Bitcoin is likely to close red for two consecutive weeks, following a period of strong bullish action throughout the year. Since September 2023, there has been only one red session in January 2024, with the rest of the price action being entirely bullish.
A correction or a long consolidation phase could offset this strong growth, according to the market’s tendency towards balance. The highest daily, weekly, and potentially monthly trading volumes in more than a year, all closing in the red, further support this bearish outlook.
Doji Candle and Confirmation of a Market Top
On the weekly timeframe, Bitcoin has reached a new all-time high, followed by a Doji candle that closed in the red last week. A Doji candle represents indecision and a potential upcoming change in market direction. After reaching a new all-time high, the market appears undecided on whether to continue its upward trajectory or initiate a retracement.
The red candle of this week validates the Doji’s signal, suggesting that the market has opted to halt its growth instead of continuing its upward trajectory. Santana suggests that unless Bitcoin turns fully green tomorrow, we can confirm the all-time high Doji as a peak or top signal.
Potential for Months of Lower Prices
Based on the current market structure, Santana anticipates that Bitcoin could experience months of lower prices before reaching an all-time high. The correction low may be hit within weeks or months, but it could take a considerable amount of time, possibly up to 8 months, for Bitcoin to return to its current price levels.
Santana predicts that a new all-time high is most likely to occur in 2025, indicating a potentially prolonged period of consolidation or correction.
Milei Moneda is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president known for his libertarian and pro-Bitcoin stance. You have an opportunity with the ongoing low presale price to get in early!
Sponsored
Show more +Repeat of March 20 Price Action
In a recent update, Santana noted that the current price action resembles a repeat of the March 20 candlestick pattern. Two red sessions followed a large green candle with high volume on March 20, indicating market volatility. Similarly, on March 24, another large green candle was observed, but with a lower volume and a smaller size compared to the March 20 candle, suggesting that lower highs are still in play.
Santana concludes that the market bias remains bearish, and that Bitcoin is expected to continue moving lower. As a new week begins, it is possible to see initial green days followed by a strongly red week, as bears seize their opportunity to push prices down.
As Bitcoin exhibits bearish signals on the weekly timeframe, investors and traders should exercise caution and prepare for a potentially prolonged period of correction or consolidation. While the exact timing and depth of the correction remain uncertain, Santana’s analysis suggests that patience may be required before Bitcoin reaches new all-time highs, likely in 2025.
As always, it is essential to monitor market conditions closely, adapt to changing circumstances, and make informed investment decisions based on thorough research and risk management strategies.
You may also be interested in:
- Is the Solana Era Ending? Elite Analyst Bets on Coinbase’s Layer 2 Ecosystem – Here’s His Outlook
- Stacks (STX) Price Eyes $4 Following 30% Pump While The Graph (GRT) Consolidates – Here’s Why
- The 2024 Launchpad Token Outlook: Bull Run Investment Strategy
Check $RECQ Meme Coin
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
