2024

Bitcoin

<p>The Bitcoin price is already down more than -22% since the mid-March high over $73,000. While BTC is currently stabilizing above $57,000 following the recent price crash, there could be even more downside ahead if history repeats, according to Jacob Canfield, a trading mentor at the Trading Mastery. Canfield’s latest <a href="https://www.tradingview.com/chart/BTCUSDT/MyMhRyYI-Will-the-2024-Yearly-Open-Be-The-Bottom-at-38-000-42-000/" target="_blank" rel="noopener nofollow">analysis</a> points to a potential further decline in the Bitcoin price, potentially reaching lows not seen since the beginning of the year.</p> 
<h2 id="why-bitcoin-price-could-crash-another-33">Why Bitcoin Price Could Crash Another 33%</h2> 
<p>Canfield’s analysis on TradingView hinges on historical patterns observed in Bitcoin’s pricing trends. “Historically, Bitcoin loves to retest the yearly open levels,” Canfield notes. According to him, these retests can either confirm bearish or <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-bull-run-economic-echoes-1930-1970-arthur-hayes/" target="_blank" rel="noopener ">bullish trends</a> but are a consistent feature in Bitcoin’s market behavior. Since 2017, each year’s opening price has been retested within the year, with the notable exceptions of 2023 and 2024 (thus far).</p> 
<p>“Since 2017, the yearly open has been retested every year except 2023 and 2024,” Canfield remarked. For instance, the bearish retest of the 2018 opening BTC price occurred right before the <a href="https://www.newsbtc.com/news/covid-19-as-a-bitcoin-trading-signal/" target="_blank" rel="noopener ">COVID-19 pandemic crash</a>, and similar patterns were observed in subsequent years. “Even the 2019 yearly open at $3,850 was retested during the 2020 Covid Crash,” the crypto analyst added.</p> 
<p>Moreover, the 2020 yearly open was retested within the first 3 months of 2020. The 2021 opening price was also retested and marked the lowest point before a significant rally that led to a peak of $69,000, just before the <a href="https://www.newsbtc.com/news/ftx-scam-crypto-sam-bankman-fried-story/" target="_blank" rel="noopener ">collapse of FTX</a>. “The 2022 Yearly open was a bearish retest similar to 2018 before the lows around $16,500. Similar to the 2021 yearly open retest giving us our bottom, this gave us our local top,” Canfield observed.</p> 
<p>Looking ahead, the crypto analyst speculates about the potential bottom for Bitcoin in the coming months. “Here is where it gets interesting. The 2023 and 2024 yearly opens have not been retested yet. The question is, do we form a bottom at the 2024 yearly open before more all time highs or do we capitulate all the way down to the 2023 yearly open at $16,500 like we did in 2019.”</p> 
<h2 id="crucial-indicators-to-watch">Crucial Indicators To Watch</h2> 
<p>The answer may lie in several technical indicators that Canfield considers pivotal. First, Canfield mentions the 0.618 Fibonacci retracement level. This indicator aligns closely with the projected yearly open for 2024, suggesting a higher likelihood of finding support in the $38,000 to $42,000 range. Notably, a price crash this low would mean another -33% for <a href="https://www.newsbtc.com/news/long-term-bitcoin-holders-resist-selling-amid-recent-highs-what-this-signals/" target="_blank" rel="noopener ">BTC holders</a>.</p> 
<p>The second crucial indicator is the weekly 200 EMA/MA Ribbon. This indicator is also converging around the 2024 opening price. It reinforces the potential for this level to act as a strong support zone. “This gives us a higher probability that we will form a bottom around that region and the 2023 yearly open may act like the 2017 yearly open and never get retested,” Canfield speculates.</p> 
<p>Despite the bearish outlook, Canfield’s analysis leaves room for various scenarios, emphasizing the cyclical nature of Bitcoin’s market dynamics and the role of historical precedents in forecasting future trends. “Either way, I think this gives us a high likelihood target based on historical precedence for where we may find a local bottom,” he concludes, inviting further discussion and analysis from the community.</p> 
<p>At press time, BTC traded at $57,479.</p> 
<img loading="lazy" decoding="async" class="wp-image-628616 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675" alt="Bitcoin price" width="3628" height="1675" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-09_13-50-31.png?resize=3628%2C1675?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

If History Repeats, Bitcoin Price Could Crash 33% Again: Here’s Why

Tabla de contenidos

NewsBTC

Otros artículos publicados el 9 jul 2024

TON Application Chain and Polygon team up to launch new TON L2

Spot BTC ETFs see $295m in inflows, triggering market-wide rebound

Key Bitcoin price metric drops to a 2-week low — Is the BTC bull market over?

Metaplanet Boosts Bitcoin Holdings Amid Market Dip, Sees Stock Surge

Drake Bets $300K In Bitcoin On Canada Over Argentina In Copa America: 'This Could Get Messi'

LandRocker’s LRT Token to be Listed on BingX, Introducing its Dynamic Roadmap (9 Jul)

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!