Bitcoin (BTC) may have more to lose if one BTC price chart pattern plays out as usual, warns veteran analyst Filbfilb.
In his latest update on X (formerly Twitter) on Jan. 19, the founder of trading suite Decentrader sounded the alarm over Bitcoin’s descent to monthly lows.
Bitcoin's 3-day chart suggests start of downside
BTC price action fell to $40,600 overnight, marking almost a 20% retreat from last week’s local highs, data from Cointelegraph Markets Pro and TradingView confirms.
While subsequently rebounding above $41,000, market strength is convincing few traders and analysts in the short term.
Filbfilb is among them, with 3-day timeframes of particular concern.
Uploading a comparative chart, he showed that when the 3-day chart crosses below the daily 50-period simple moving average (DMA), further downside tends to result. The chart extended to Bitcoin’s current all-time high of $69,000 seen in November 2021.
“3 Day red with a break below 50 DMA. There are a few examples of this happening in the past,” he commented.
Previously, Filbfilb successfully estimated Bitcoin topping out at $48,000 around the announcement of the United States spot Bitcoin exchange-traded funds (ETFs). A similar BTC price target is in place for April’s block subsidy halving.
Bitcoin traders stay cautious
The overnight dip meanwhile sent BTC/USD below its 2024 opening price.
Related: Did a $5B Bitcoin whale sale spark the post-ETF BTC price crash?
Analyzing liquidity conditions, financial commentator Tedtalksmacro flagged $40,000 as the next crucial level to hold.
BTC bids thickening up now after that dump and offers have lightened considerably, 44k seller is still there though...
— ted (@tedtalksmacro) January 18, 2024
463 BTC bid at $40,000 (~$18.5M USD) at Binance. https://t.co/yAdqIHM1nX pic.twitter.com/n2hBesoY4C
As Cointelegraph reported, various market participants view the mid-$30,000 range as a potential bounce zone to come.
“I think we need 1 more (smaller) leg down before we can bounce. Last nights bounce not convincing me…,” popular trader Crypto Ed, creator of trading group CryptoTA, wrote on the day, preceding in-depth analysis.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
