Is Bitcoin Headed for a Price Plunge Below $40k?

Bitcoin (BTC) has been trading above the $47,000 mark, in line with the forecast made by Finbold on January 27. There are now indications that BTC could potentially drop below $40,000, signaling a possible sell-off event.

The anticipated surge to approximately $48,000 marked the initial phase of a thorough analysis conducted by CrypNuevo. The professional trader accurately predicted this upward movement as a precursor to Bitcoin seeking lower prices in March.

Should the forecast materialize, Bitcoin may decline to the $36,500 zone where it is expected to encounter substantial support, potentially leading to a swift recovery.

Prior to this projected decline, CrypNuevo suggests that BTC may target the upper wick at nearly $49,000, necessitating a period of consolidation around the $47,000 mark over the weekend.

Nevertheless, cryptocurrency trading is inherently unpredictable, and market conditions can change rapidly. Consequently, a robust technical analysis entails conditions for invalidation, which indicate a potential shift in the trend.

In a video shared on YouTube on February 9, CrypNuevo outlined the factors that could invalidate the expected sell-off of Bitcoin to $36,500. In particular, he highlighted the absence of significant price barriers above the $50,000 level.

As a result, the sell-off scenario would be invalidated if Bitcoin surpasses the $50,000 threshold with substantial volume. In such a scenario, there could be a rapid ascent to $60,000, presenting an attractive risk-reward ratio for investors.

“It’s a game of possibilities. This is a possibility, but I’m not wedded to this idea; I’m just monitoring the charts.” – CrypNuevo

From a fundamental perspective, developments related to the Bitcoin spot ETFs could contribute to this invalidation. Additionally, the block subsidy halving scheduled for April is viewed as an overall bullish event.

Taking all factors into consideration, investors are advised to trade prudently and stay informed of Bitcoin-related developments in order to make informed investment decisions.

Disclaimer:
The contents provided here should not be construed as investment advice. Investing in financial markets carries inherent risks, and it is vital to exercise caution and diligence when making investment decisions.