Or Fireworks Coming?
The crypto space is currently facing bearish signals as the price of Bitcoin has failed to maintain crucial levels at $42,000, slipping to $39,909 at the time of writing. United States financial service provider Deutsche Bank, foresees even more declines in the upcoming months, projecting the value of Bitcoin to dip below $20,000.
Deutsche Bank Predicts Massive Bitcoin Decline
Reports from Bloomberg, referencing a recent survey made from January 15 to January 19, 2024, by Deutsche Bank reveals investor’s sentiments regarding the volatility and future trajectory of BTC’s price. The survey, which appraised over 2000 people in the United States, United Kingdom, and the Eurozone, revealed that a third of the surveyed people expect to see a significant drop in the price of Bitcoin to values below $20,000.
The substantial decline is anticipated to occur around January 2025. Although the majority of people foresee a significant plunge in the value of Bitcoin, the survey also indicates that 15% of people believe that Bitcoin’s price will consolidate between $40,000 and $75,000 by the end of 2024. Additionally, about 10% of the respondents think that Bitcoin could fall between $20,000 and $40,000.
It’s important to note that the price of BTC has been experiencing major declines over the past few weeks. At the time of writing, the cryptocurrency is trading below $40,000 after surging over $45,500 earlier in January this year.
This unprecedented decline is raising concerns in the crypto space as the price of Bitcoin is moving contrary to what most crypto investors and enthusiasts previously projected. Various crypto analysts predicted that the price of Bitcoin could surge to $50,000 following the approval of Spot Bitcoin ETFs. However, Bitcoin gave up most of its post-ETF approval gains and had been experiencing severe declines since.
BTC bulls vie for control from bears | Source: BTCUSD on Tradingview.com
Analyst Reveals Key Factors That Could Break BTC Price Descent
Popular crypto analyst, Ali Martinez has taken to X (formerly Twitter) to disclose key technical price elements that could halt further declines in the price of Bitcoin. Martinez shared a chart published on TradingView depicting intricate price movements and patterns for Bitcoin.
The crypto analyst revealed that a weekly closing price below $38,000 on the Bitcoin chart may signify a potential price drop, with the next significant support level expected around $33,000. He mentioned that this key area is a critical zone marked by a convergence of three important technical indicators, including a lower boundary of a parallel channel, a 0.5 Fibonacci retracement level, and a 50-week simple moving average.
According to Martinez, the combination of these critical factors creates a great line of defense for Bitcoin’s price, potentially providing a support zone to prevent future declines in the cryptocurrency.
Featured image from Analytics Insight, chart from Tradingview.com
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