The recent crash in Bitcoin price, bringing it back toward the $56,000 level, was triggered by a brief pump following the CPI data release on Thursday. The released data showed that inflation rates came out at 3%, which was lower than expected. Despite desperate attempts from bulls to keep the price up, the bearish trend has persisted. Even a crypto analyst named Luca VIP does not believe that the decline is over and expects the fall to continue from here.
Luca VIP, a crypto analyst on the TradingView website, has expressed bearish tendencies for the Bitcoin price moving forward. The analyst points out that the current Bitcoin price fluctuation is due to hitting resistance at $59,000 following the pump. The rejection has put the cryptocurrency in a consolidation phase, indicating a threat to further decline. The sideways performance of the BTC price post Thursday surge suggests that bears are still in control of the price. Luca VIP predicts a potential decline trend to as low as $56,000 until the decline is complete.
Despite the anticipated decline, Luca VIP highlights that the BTC price has formed a W pattern, which historically indicates a bullish pattern. This suggests a bullish reversal could be in the cards, triggering a retest of the $59,000 level. If successful, this retest could push the price above $60,000 once again. Luca VIP mentions, “BTCUSDT may retest the resistance zone at $59,000. A successful breakout above this level could push the price to higher targets, potentially around $60,000 or higher.”
Although the market is still grappling with the Bitcoin price dip, some crypto analysts view this as a favorable timing to enter the market. Another pseudonymous analyst known as RLinda on TradingView shares this sentiment. RLinda believes that the fall to $57,000 presents a good opportunity to position oneself in Bitcoin, especially with fear prevailing due to continuous sell-offs. The analyst suggests that the BTC price is on track to renew local highs. This stance is supported by the Crypto Fear & Greed Index plunging into Extreme Fear, historically a prime time to get positioned for cryptocurrencies.
The Bitcoin price has experienced a drastic shift due to a variety of factors such as the CPI data release, resistance at $59,000, and market sentiment influenced by fear and greed. While some analysts predict a further decline in the BTC price, others see it as an opportune moment to get into position for potential upward movement. It remains to be seen how the market will react in the coming days and whether the anticipated bullish reversal will materialize. Investors are advised to carefully monitor the situation and make informed decisions based on thorough analysis and market trends.
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