Classic technical indicator foresees another massive Bitcoin price drop with $16K target  

This past week, an extremely bearish technical indicator for Bitcoin predicted another price plunge for the world’s most well-known virtual currency. The “Keltner Channel”, which is basically a 50-day moving average of the Bitcoin-to-dollar exchange rate, crossed below its long-term trendline, as shown on the chart below.

Markets are in a bad mood overall after Bitcoin’s new all-time high took the price down below $8,000 again. This bearish mood has led to a massive selloff in the cryptocurrency market, and prices are falling sharply. One technical signal that has been in a long-term downtrend is the 200-day moving average, which is now lower than it has been in over a year.

Seems like we’re going to see another massive drop in the price of Bitcoin. Yesterday, a classic technical indicator called RSI (Relative Strength Index) predicted the next drop. However, this time, it’s going to be bigger than before. The price dipped below $4,000 for the first time since April 1, and RSI has predicted another drop to $6,000. More specifically, the indicator shows a 70% probability that Bitcoin will drop below $4,000 in the next week.. Read more about bitcoin options prices and let us know what you think.

Bitcoin (BTC) has recovered more than 25 percent after plunging during the plunge on the 19th. The month of May had reached its lowest point at $30,000. But the cryptocurrency continues to advance under the probability of another strong selling period due to a classic technical indicator pattern.

Bitcoin price in a falling pennant

This pattern, called a bearish pennant, occurs when an asset consolidates after a sharp decline and forms a small symmetrical price area resembling a triangle. It broke through the support level of the range and continued its downward movement. Traders usually estimate the size of a negative move on a breakout by measuring the height of the previous move. Bitcoin is currently trading in a similar bearish pennant structure, fluctuating sideways while forming a sequence of lower highs and higher lows. Meanwhile, the consolidation pattern precedes a massive move down to the $20,000 level. So if the BTC/USD price breaks below the pennant structure, which will be accompanied by an increase in trading volume, there is a high probability of a collapse near $20,000. The bearish outlook is also based on the recent rise in bitcoin. It should be noted that the purchase price per bitcoin at 19. In May, the price dropped from nearly $65,000 to $30,000, a drop of more than 50%, followed by a sharp 30% rebound. Bitcoins-pennant structure and its main downside target. Source: TradingView Meanwhile, market analysis service Income Machine is warning of an emerging dead cat bounce scenario in the bitcoin market, noting that the impending BTC/USD rally will be fueled by fresh selling pressure near the highs of the 26th. May (between $39,000 and $41,000) could be limited. She advised traders to exit their bullish positions around $40,000. In addition, Income Machine also noted that the failure to maintain $30,000 as support threatens to cause the bitcoin price to collapse to $16,200, a level that coincides with the bear pennant target. The analyst house selected $16,200 as support in the November-December 2020 session due to historical relevance. A bearish forecast for bitcoin presented by Income Machine. Source: TradingView Classic technical indicator foresees another massive Bitcoin price drop with $16K target   Conversely, a break in the peaks of 26. May’s rise is forcing us to change our analysis and take a more bullish view of BTC-USD, added analysts at Income Machine. Pankaj Balani, CEO and co-founder of cryptocurrency exchange Delta, also expects a prolonged bearish breakout if the bitcoin price closes below $34,000. However, the UBS alum capped its downside target at $28,000, the 2021 low. He told Cointelegraph: Traders will monitor these levels before taking any decisive action. Still, the risk remains higher for bulls than bears because the long-term price movement is downward.

Father forecast

Mr. Balani also noted that current price trends indicate demand in the $30,000 to $35,000 range. Thus, an upward movement beyond the said range could lead to an upward breakout of the bearish pennant, which Balani calls a symmetrical triangle. BTC forms a classic symmetrical triangle, and any breakout will result in a significant price movement, he said, adding: When BTC finally breaks through the $40,000 barrier, we can expect a move towards $45,000.The long-term Bitcoin forecast for 2018 on BitMEX is a massive Bitcoin price drop to $16,000. This was first predicted on the BitMEX Market Report blog on January 9, 2018.. Read more about bitcoin resistance levels today and let us know what you think.

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