Technical analyst Alan Santana has issued a stark warning to investors: the leading cryptocurrency’s support levels are under attack, and a crash may be imminent. Santana’s recent analysis highlights the weakening support range between $59,000 and $63,000, which bears have challenged more than five times, suggesting they have gained the upper hand.
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The Weakening Support
Santana’s analysis revolves around a crucial support level, represented by a black line on the chart, which spans the range between $59,000 and $63,000.
This level has been repeatedly tested, with each challenge further eroding its strength. Santana suggests that bears are currently in control of the market because support, rather than resistance, continues to face challenges.
The repeated tests of this support level have led to a new low, and Santana believes that the situation is likely to worsen. He urges investors to prepare for a potential crash, emphasizing that it is better to be prepared than to face regret later on.
Santana’s Earlier Analysis
Santana, in his analysis from April 17, had already warned about the potential for a market correction after the robust growth in 2023 and early 2024. He noted that after such a significant upward move, it is highly probable that the market will test the support level, as this is a typical behavior in market cycles.
Santana addressed his warning to beginners, rookies, and eternal bulls, acknowledging that experienced traders and analysts are well aware of the current market dynamics and the potential for a downturn, regardless of the hype surrounding Bitcoin ETFs.
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Show more +The ETF Hype and Market Cycles
While the recent approval of Bitcoin ETFs has been a strongly bullish development in the short to mid-term, Santana reminds investors that market cycles are inevitable. He emphasizes that after a period of growth, a downturn is to be expected, just as an upward move follows a period of decline.
Santana suggests that a bounce may occur at the 50-day Exponential Moving Average (EMA50), but the market’s behavior following this potential bounce remains uncertain. He identifies two attractive levels for the bearish play: the $44,400 level, which is the immediate focus, and the range between $37,000 and $33,333, which should also be kept in mind.
Preparing for the Potential Crash
Given the weakening support and the historical precedence of market cycles, Santana advises investors to prepare for a potential crash in Bitcoin’s price. While the exact timing and magnitude of the downturn remain uncertain, being proactive in risk management and portfolio diversification can help mitigate the impact of a market correction.
Investors should closely monitor the $59,000 to $63,000 support range and be prepared to take action if this level is decisively breached. Adjusting stop-loss orders, reducing exposure to high-risk assets, and maintaining a long-term perspective can help navigate the potential turbulence ahead.
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