In a recent analysis by The Fomo Factory, an expert analyst examined the bullish and bearish signals in the current Bitcoin market, raising concerns about a possible correction. Just days ago, Bitcoin recorded a historic bullish close, surpassing its previous all-time high on a weekly, monthly, and quarterly basis. However, the euphoria seems short-lived as a potential downturn now threatens the gains. The critical question looming over investors’ minds is whether this retreat indicates further trouble ahead.
The analyst pointed out the struggle Bitcoin faces in breaking above the $70,000 level, suggesting a possible prolonged period of volatility. Despite observing higher lows in the current trend, there are also lower highs, indicating a state of uncertainty in the market.
Exploring Downside Targets and Support Levels
Delving into potential scenarios, the analyst outlined downside targets for Bitcoin. Key levels to watch include $60,000, where significant support lies, and the Fibonacci retracement level of $52,000 to $56,000. While a dip to $60,000 seems plausible, the analyst warns against ruling out a deeper correction to the $48,000 to $42,000 range.
The situation is just as dangerous for altcoins, which tend to move in line with Bitcoin. As they are robust, they still appear susceptible to the movements of Bitcoin. The analyst suggested that altcoins could decline by 30-40%; therefore, investors should prepare for volatile times.
The analyst, however, agreed to the prospect of this being a bearish market. This was compared to previous bull markets by the analyst who stressed that it is usual for corrections to happen and precede more bullish momentum. The potential of a bounce back remains though, due to halving and a bullish outlook.
Although admitting the likelihood of correction, the analyst warned investors against panic but rather seeing it as an opportunity where assets can be accumulated at lower prices.
