Bitcoin price is likely to go lower based on three bearish technical corrections currently underway. But how far will the price of Bitcoin fall? In this digital currency post, we will analyze the price of Bitcoin over the coming months.
During one of the quietest periods in the history of the crypto market, the price of Bitcoin continues to hover at recessionary levels. Meanwhile, several technical and fractal setups suggest that the BTC/USD pair could drop to $21,750 in the coming months.
Let’s take a closer look at the nearest support levels to see how low the Bitcoin price can go.
Bitcoin has been fixed in a horizontal trading range since mid-August 2023, defined by $26,670 as resistance and $25,650 as support. In short, BTC price went out of range in reaction to fundamental news such as new Bitcoin ETF plans and FTX liquidation fears.
But in general, traders have kept the price of Bitcoin in the range of $26,670-25,650. Overall, this range looks like a “bearish flag”. A bearish continuation pattern characterized by a consolidation channel that forms after a strong downtrend.
As a rule of technical analysis, after the price goes out of its range, the bearish flags will decrease in the downward direction and as high as the height of the previous downward trend. Applying these parameters to the current Bitcoin price stabilization yields a bearish flag target of around $23,000.
In other words, the price of Bitcoin can decrease by nearly 15% from the current price level by the end of the year.
As shown below, Bitcoin bear markets since 2017 have typically broken out near a typical uptrend line. BTC price tested the November 2022 trend line around $16,750. The price has increased by 70% since then.
However, Bitcoin may have bottomed in a bear market. However, the price should decisively break above the 0.236 Fibonacci line near $28,350 to confirm its long-term bullish recovery based on the historical fractal. Something that he failed to do until recently.
Bitcoin is now moving below the 0.236 Fibonacci retracement. This increases the possibility of a pullback to the bearish trendline support near $23,000.
Bitcoin is inches closer to making a death cross between its 50-day (red wave) and 200-day (blue wave) EMA.
This is the third Bitcoin death cross formation during the Fed rate hike period, with the previous two crosses being 17-18% lower.
So, if the fractal runs again, BTC’s bearish price target in this case would be around $21,750.