The Bitcoin price is at risk of a further crash, having already dropped to as low as $91,000 earlier this week. Crypto analyst Dgtrd recently painted a picture in which the flagship crypto could still drop below $30,000.
How Bitcoin Price Could Crash Below $30,000
In a TradingView post, Dgtrd shared an accompanying post that showed that the Bitcoin price could drop below $30,000 and possibly reach $19,973 by next year. He explained how this price crash could happen. First, he noted that Bitcoin appears to be in its fifth wave, signaling it could soon reach new all-time highs (ATHs).
However, the analyst warned that these ATHs will likely not be significant ones as fifth waves often form as ending diagonals. He further remarked that on a larger scale, the completion of this lower-degree fifth wave suggests that the broader third wave is also reaching its peak. If this happens, Dgtrd asserted that a higher-degree corrective phase is on the horizon, which could lead to a Bitcoin price crash below $30,000.
He explained that historically, major corrections have resulted in declines exceeding 75%. If history repeats itself, Dgtrd remarked that the upcoming fourth wave of the larger degree could follow a similar trajectory. The analyst noted that this implies that the Bitcoin price may enter a bearish cycle within the next few months.
This is the period in which the crypto analyst predicts that the Bitcoin price could drop below $30,000 and reach $19,973. Based on Dgtrd’s analysis, this would mark the bottom for the flagship crypto in the next bearish cycle. However, the chart showed that BTC will reach $260,000 or higher in the next bull run.
Has The BTC Price Topped
The Bitcoin price has significantly retraced from its current all-time high of $109, which it reached on January 20, the same day that Donald Trump took office. This has again sparked speculations that Bitcoin might have reached its peak in this cycle. However, crypto analyst Tony Severino opined that BTC hasn’t topped yet.
However, while he doesn’t think the Bitcoin price has topped, he warned that some parameters have been satisfied in terms of time cycles and wave counts. Meanwhile, Severino explained that the monthly technical indicators like the Relative Strength Index (RSI) didn’t come close to what is usually seen around a market top, which is why he believes BTC hasn’t topped.
Severino also ruled out the possibility that the Bitcoin price has had a blow-off top in this cycle. He noted that while it is still possible, evidence suggests that there isn’t enough strength for that currently. The analyst further remarked that this could change but diminishing returns and declining volatility could be to blame for a lack of this pattern.
At the time of writing, the BTC price is trading at around $96,150, down almost 1% in the last 24 hours, according to data from CoinMarketCap.
