Investors and experts are both wondering what Bitcoin will do next after a rough month with sky-high prices and sharp drops. After Bitcoin’s recent 13.65% drop and the continued tense situation in the world, everyone is wondering if history will repeat itself and cause another crash.
Just about a month ago, BTC hit a new record high of about $73,800. But in the days that followed, it fell sharply. BTC/USD is selling for as little as $62,622 as of April 17, which makes people worry that the price could go down even more.
This new downturn has many causes, including a worsening political conflict in the Middle East and more uncertainty about U.S. economic policy, especially when it comes to interest rates.It’s only two days until Bitcoin is cut in half in 2024, which makes people even less sure. Will this event cause BTC to crash again, or will it surprise everyone and get back up quickly?
Bitcoin Faces Technical Warning Signs
Technical experts say that the formation of a triple-top design is a bad sign because it means the price could fall even more. If Bitcoin can’t stay above its support level near $63,500 in the next few weeks, it could drop to about $54,650 based on this trend.
Even worse for bears, Stockmoney Lizards experts have seen that the recent changes in Bitcoin’s price are a lot like the Wyckoff Distribution Model. This makes it look like a possible downturn is coming.
Institutions have stopped buying BTC ETFs and a lot of funds has been leaving them since the conflict between Iran and Israel got worse. This means that the market is getting ready for tough times ahead.
However, amidst the gloom, some analysts remain optimistic. Christopher Inks, for instance, points to the potential for a bullish reversal signaled by an Adam and Eve pattern forming in Bitcoin’s price chart. If this pattern plays out as anticipated, BTC could rally towards a new record high of $75,000 in the coming days.
This optimistic view is backed up by data from CryptoQuant, which shows that a lot of Bitcoin is being bought up while the price is falling. With exchange withdrawals at their best level since January 2023, many traders are betting that Bitcoin will be strong in tough times.
