Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go

In January, Bitcoin experienced a rollercoaster ride. Bitcoin, which was a digital asset that enjoyed great success in 2021 is now on the verge of collapse. The digital asset has fallen more than 50% from its original $69K high. Investors scramble for answers as nerves run wild and investors try to figure out when the chaos will end. An analyst believes that bitcoin may not see significant support below $40,000, but the worst could yet come.

Bitcoin has lost critical support level

Dave the Wave pseudonymous analyst is well known for calling the May collapse. Dave was one of the first to warn of a possible price crash last year, when digital assets such as bitcoin were in a frenzy. Shortly after that, there was a market crash that saw the price of bitcoin drop by about 50%.

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Another warning was issued by the analyst this time. Dave the Wave uses multiple charts to show their position. analysisbitcoin market. Prognosis: Another downward correction toward $25,000 might be possible.

Bitcoin price chart from TradingView.com

BTC starts a recovery trend| Source: BTCUSD on TradingView.com

Dave the Wave educates his 90K followers via multiple tweets about the analysis. First, the Fibonacci extension was used to analyse. They arrived at a potential downside of $25,000 after measuring the head and shoulders.

According to them, bitcoin had passed a critical support level. This is the threshold below which bitcoin will likely continue to fall. “The problem is once it loses that 40K area, there’s not much support below,” the analyst said.

Chart showing bitcoin losing support level

 Source:| Source: Twitter

What’s In Store?

The next step was to determine potential bounce points for the digital assets. This is done by identifying the points where there might be a trend reverse. “A lower level again and lines of resistance that price would have to cross before even thinking of a trend reversal.” Since this call, the price of bitcoin has since fallen below this point, now touching as low as $33,000.

Chart for trend reversal

 Source:| Source: Twitter

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The current chart shows an upward trend if the digital asset is able hold over $35K.

BTC fails to hold above $35K

 Source:| Source: Twitter

Bitcoin has dropped to below the $25,000 mark since the tweet went public. If Dave the Wave’s analysis is anything to go by, then investors may need to brace themselves for impact as the next stop may very be the $25,000 range, which is the next major support point.

Featured image taken from LinkedIn.

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