Bitcoin is still at a critical level where its next move can be determined. With sentiment now turning negative, expectations remain that the next move in Bitcoin price will be a sharp price collapse. This appears to be supported by technical patterns that show the cryptocurrency has fallen below key levels. As previous performance suggests, it is highly likely that BTC will follow its historical trend and ultimately see weakness in its price.
Why the price of Bitcoin may plummet
As sentiment plummeted and selling intensified, the possibility of a collapse also increased. One key development that suggests further declines could be coming is that Bitcoin price has lost its trendline on the logarithmic chart. This has historically been a bearish move for prices.
Tony “The Bull” Spilotro, cryptocurrency analyst and CMT certified expert, highlighted these developments and pointed to the downtrend. According to Spilotro, the Bitcoin price has now lost the logarithmic chart trendline that started in 2024, which has huge implications for the cryptocurrency.
Historically, whenever the Bitcoin price loses this trend line on a logarithmic chart, the results have always been very bearish. The usual end result was a price crash. Therefore, it is important to monitor this rest period carefully. If so, it means that the BTC price decline is far from over.
The cryptocurrency analyst explains that while fractals may not be a given and may not occur exactly, this does not mean they are not important. “Fractals are not guaranteed, but a valid example of losing a linear trend line in a logarithmic chart is not something you can ignore,” Spilotro said.
Essentially, if the trend plays out as expected, it would mean that the Bitcoin price collapse is not over yet. So far, analysts have been warning of a price decline, with some predicting BTC could fall as low as $50,000.
Featured image by Dall.E, chart by TradingView.com
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