In a recent tweet that sent shockwaves through the cryptocurrency community, renowned crypto analyst Crypto Tony expressed a bearish outlook for Bitcoin (BTC), suggesting a potential retreat to the $38,000 – $39,000 range in the coming weeks. The warning comes in the aftermath of a rejection at the $47,000 level, a significant resistance zone that proved formidable on the first attempt.
As of the latest update, the price of Bitcoin stands at $42,678, reflecting a 0.35% decline in the past 24 hours. The cryptocurrency market has been buzzing with anticipation surrounding the approval of spot Bitcoin exchange-traded funds (ETFs). However, when regulatory approval was not met with the expected upward movement last Thursday, traders might have opted to lock in profits, triggering a sharp pullback in the price of BTC.
This unexpected turn has prompted some analysts, including Crypto Tony, to adopt a bearish stance. In his tweet, the analyst conveyed that there was a rejection for Bitcoin at $47,000, considering it a significant resistance zone that made sense on the initial attempt. He further expressed an expectation for Bitcoin to range and potentially decrease to the $38,000 – $39,000 range in the next few weeks.
The analyst’s cautious sentiment suggests a period of consolidation and potential downside for Bitcoin, opening opportunities for alternative cryptocurrencies and Ethereum (ETH) to flourish temporarily. This divergence in performance between Bitcoin and other digital assets is a common trend in the volatile cryptocurrency market.
Bitcoin Price Analysis
After the recent decline, Bitcoin continues to be below the $43,500 mark and the 100-hourly Simple Moving Average. The immediate obstacle on the positive side is around the $42,800 threshold. Furthermore, a bearish trend line is emerging, connecting with resistance at approximately $42,850 on the daily chart of the BTC price.
The initial significant barrier lies at $43,250 or the 23.6% Fibonacci retracement level of the downward shift from the $49,000 peak to the $41,476 low. A decisive breakthrough above the $43,250 barrier has the potential to propel the price toward the $44,000 resistance.
Subsequently, a new resistance is taking shape around the $45,200 level, closely aligned with the 50% Fibonacci retracement level of the decline from the $49,000 peak to the $41,476 low. A successful breach of the $45,300 threshold could initiate a robust uptrend, paving the way for further price escalation. The subsequent significant resistance lies at $47,000.
Should Bitcoin be unable to surpass the $43,250 resistance zone, it might initiate a new downtrend. The initial support on the downside is around the $42,120 level. Following that, the subsequent significant support is situated at $41,500. A breach below $41,500 could trigger bearish momentum, potentially leading the price to decline towards the $40,000 support in the short term.
The recent pullback, coupled with the uncertainty surrounding regulatory developments, has fueled a sense of caution among investors. While Bitcoin remains the flagship cryptocurrency, its price movements have a significant impact on the broader market. Traders and enthusiasts will be closely monitoring key support levels and market dynamics in the coming weeks to gauge the accuracy of Crypto Tony’s prediction and assess the overall health of the cryptocurrency market.
