A cryptocurrency trading expert has suggested that the ongoing Bitcoin (BTC) sell-off will likely escalate in the coming weeks, noting that the asset is facing a possible capitulation event.
In a TradingView post on August 3, analyst Alan Santana noted that this projection is based on a detailed examination of historical price movements and critical technical indicators, which forewarn investors of significant market turbulence ahead.
According to the expert, Bitcoin surged past $70,000 on July 29, 2024, but the euphoria was short-lived. The cryptocurrency couldn’t sustain this price level for even 15 minutes, swiftly falling below the mark and trading below $65,000. This rapid descent indicates overwhelming selling pressure at this price point.
Bitcoin price analysis chart. Source: TradingView/AlanSantana
Santana noted that for Bitcoin to embark on a new bullish wave, the maiden crypto must retest EMA144 as a support level. This retesting phase is crucial: if EMA144 holds, Bitcoin could reverse its course and resume growth. However, if it fails, the cryptocurrency may need to seek lower support levels before any potential recovery.
Santana’s analysis highlights the critical importance of this phase, projecting a minimum price of $40,000 for Bitcoin in the coming weeks.
Bitcoin price analysis
By press time, Bitcoin was trading at $61,664, having plunged over 4% in the last 24 hours. On the weekly timeframe, BTC was down almost 10%.
Bitcoin seven-day price chart. Source: Finbold
Overall, Bitcoin’s short-term price movement is showing significant volatility, and dropping below the $60,000 support could lead to more losses.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
