Bitcoin prices have fallen over the past few months as cryptocurrency markets react to negative news. One of the major news stories contributing to this decline was the US attack on Iranian forces. Bitcoin prices were also left out as the war had a negative impact on broader financial markets. And even now, even when digital assets appear to be forming something close to a bottom, there are still expectations that prices will continue to plummet.
Bitcoin ABC Wave Says Last Drop Didn’t Happen
Bitcoin price continues to struggle after bears initially broke the $70,000 support line, and the resulting weakness threatens a further downtrend. This move is consistent with cryptocurrency analyst Minga’s prediction that the digital asset is indeed stuck in an ABC wave trend.
In an analysis shared on the X (formerly Twitter) platform, the analyst explained that Bitcoin is indeed sticking to this trend. Despite the fact that historical movements don’t always play out the same way, there’s still plenty of potential for investors to be cautious.
If you look closely at the wave pattern, the analyst’s chart shows the beginning of the wave. started If the price is over $100,000. As prices fell, waves continued to occur. The most recent of these is the fact that Bitcoin price has now entered the final leg of its wave pattern and this is the most bearish part of it.
The last wave, wave C, is generally the wave with the biggest decline. Here, digital asset prices are expected to fall by almost 50%. Based on historical performance, if this trend is followed, the Bitcoin price will eventually fall below $40,000.
For the tail end of this decline, analysts place the bottom of the decline near $34,000. There’s a bit of wiggle room on this, but it’s still very likely that prices will drop this low. Therefore, it is important to factor these movements into Bitcoin’s performance.
As for key support levels through all of this, the analyst highlighted some support just below $50,000. More specifically, if the price starts to fall, support is at $49,577. However, there is little support left for the cryptocurrency below this level.
Featured image by Dall.E, chart by TradingView.com
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