As Bitcoin (BTC) experiences sharp corrections amid increasing selling pressure, some analysts argue that Bitcoin could face further declines.
At this point, Spectra Markets president Brent Donnelly stated that Bitcoin may decline in the short term.
Buy Orders Ready for $94,000 and $82,000!
Speaking to Coindesk, Brent Donnelly said that he has placed buy orders at $94,000 and $82,000 in anticipation of a possible drop.
Donnelly stated that seasonal factors, such as the decreasing interest in digital assets as company treasury assets and the decline of the Bitcoin halving cycle, are effective in predicting a decline, and claimed that these factors could even drag Bitcoin into a prolonged bear market.
Historically, Bitcoin’s bull market peaked approximately 16-18 months after the halving, followed by a bear market of approximately one year. At this point, some analysts suggest that this cycle may now turn bearish, as the last halving occurred in April 2024. However, some analysts argue that halving cycles are no longer valid due to spot ETFs.
Bitcoin’s Technical Outlook Points to a Decline!
Speaking about the technical outlook, Donnelly pointed out the formation of a double top on the Bitcoin chart, meaning a bearish reversal pattern.
“I think Bitcoin’s weekend decline following Powell’s dovish speech in Jackson Hole was a red flag. Now we’re seeing a double top in BTC, the first during Crypto Week at the White House and the second at the ETH party hosted by Bitmine.
Technically, Bitcoin recently broke below the $111,982 support level, signaling a bearish reversal and has been using this area as resistance ever since.
If it fails to break above this zone, it could lead to further declines.”
Finally, the analyst added that weakening US employment data and market expectations for Fed interest rate cuts could increase downward pressure on Bitcoin.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/analyst-says-i-expect-a-short-term-drop-in-bitcoin-announces-two-levels-he-prepared-for-buy-orders/
