A cryptocurrency analyst, Cryptododo7, is predicting a Bitcoin price drop despite its recent surge. Let’s dive into the details.
Bearish Pennant Pattern Spotted
Cryptododo7 points to a bearish pennant formation on Bitcoin’s chart. This pattern, following a double top (a classic reversal signal), suggests a potential price correction. The pennant formed after Bitcoin’s fall from $96,000 to $76,000 in February, representing a period of consolidation before a predicted drop. The analyst believes a break below the lower trendline, around $74,000, would confirm this pattern.
Price Target: $51,400
If the bearish pennant plays out as predicted, Cryptododo7 forecasts Bitcoin could plummet to $51,400. This level is significant because it aligns with the 200-week moving average, a strong support level. The analyst considers a retest of this support plausible, especially given the current economic climate.
Binance Traders Also Bearish
Adding weight to the bearish prediction, analyst Ali Martinez reports that over half (56.18%) of Binance traders have opened short positions on Bitcoin. This means a significant portion of traders on the world’s largest exchange are betting against Bitcoin’s recent price increase.
Current Market Conditions
At the time of writing, Bitcoin is trading at $85,416, up 2.5% in the last 24 hours. However, daily trading volume is down by 40.07%, currently at $25.10 billion. This suggests a potential shift in market sentiment.
