The cryptocurrency market continues to face turbulence as Bitcoin’s price drops by 3.65% intraday and 14.65% over the past month, reaching $58,830 on July 4. Amidst this ongoing decline, prominent crypto analyst Crypto Patel has forecasted an even steeper drop, citing several bearish indicators that suggest Bitcoin could fall as low as $55,000 soon.
Here’s what he has to say.
In a recent tweet, renowned crypto analyst Crypto Patel shared his bearish outlook on Bitcoin (BTC). According to Patel, Bitcoin has hit a Break of Structure (BOS) and made a new low, perfectly rejecting the Bearish Order Block (OB). This pattern suggests a potential drop to $55,000 in the near future.
Patel noted that Bitcoin is currently forming a new OB in the $61,000-$62,000 range. He predicts this could lead to a short-lived pump before the next significant leg down. His forecast is based on a technical analysis of Bitcoin’s price movement and market structure, indicating a possible decline to $55,000, and potentially even falling to around $53,700.
Adding to the bearish sentiment, Markus Thielen, founder of 10x Research, has predicted that Bitcoin could decline toward $50,000. Thielen’s analysis points to the potential realization of a double-top pattern, where the price reaches two similar peaks with a slight dip in between.
If the price breaks below the neckline of this pattern, it could fall by an amount equal to the distance between the peaks and the neckline.
On-chain data provider Santiment reported heavy sell-offs in Bitcoin and altcoins, hitting nearly two-month low levels. Despite the scheduled arrival of spot Ethereum ETFs by July 15, Ethereum prices have dropped below $3,200.
Santiment noted that the crypto community sees this situation as a potential buy-the-dip opportunity. However, the firm suggests that investors should wait for the initial wave of enthusiasm to settle before making any new purchases.
According to Santiment, the ideal time to buy would be when traders become skeptical and impatient. The recent BTC price drop has led to aggressive liquidations, as many traders had bought the dip when BTC was trading around $60,000.
The crypto world is known for its volatility. Are you prepared to weather the storm?
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