Bitcoin To Possibly Hit $50k in Next few Hours: Worst Case Scenario Explained

Today marks a significant moment with the U.S. elections taking place, and it’s a day that many have been anticipating. Over the next few days, more clarity is expected on the market direction, particularly in how the election results will impact both the stock and crypto markets. Here’s a breakdown of analysis by the analyst of Kyle Doops Trading Show. 

Hash Ribbons Indicator

On the weekly chart, Bitcoin’s Hash Ribbons indicator has given a buy signal. Historically, when this happens, the previous higher low tends to hold strong without breaking. For now, Bitcoin is still in a range-bound market. This means the price is trading between a high and low range, without a clear breakout yet.

Range Low: Around $50,000.

Range High: Around $70,000.

Key Levels to Watch

$60,000: If Bitcoin drops to this level, it could be a strong buying opportunity. This price level lines up with several important technical indicators, including the 200-day moving average and EMA. If Bitcoin starts closing below $60,000, it may mean weakness.

$50,000: This level is crucial. If Bitcoin starts closing multiple candles below $50,000, it would suggest that the market is losing strength. If we fall even further to around $40,000, that would be a major support level. However, a drop to this level would raise concerns about the end of the current market cycle, since a sharp 40% drop could signal the start of a major correction.

The “Battle Line” at $60,000

The $60,000 level is what the analyst calls the “battle line”. This is where he expects Bitcoin to find significant support. If Bitcoin drops below this line, it could indicate a shift in market behavior. This level is important because it also represents Bitcoin’s previous higher low. If Bitcoin does dip to this range and holds, it could set up for a potential bounce or longer-term consolidation.

Current Range and Possible Scenarios

Bitcoin has been trading in this range for about 8 months, and it could continue this way for a while. If Bitcoin stays within this range and tests the $60,000 area, it could extend the consolidation for a couple more months.

Short-Term Bearish: If Bitcoin struggles to break above $60,000 and gets rejected, this could lead to a lower high and possible downward pressure.

Short-Term Bullish: If Bitcoin breaks above $72,000 and holds above that level for multiple days, it would signal the start of a strong upward trend.

Worst-Case Scenario

If Bitcoin drops below the $52,000-$53,000 range and stays there, it would start to invalidate the accumulation phase, and the cycle could turn bearish faster.