The recent Bitcoin price crash seems to have triggered a sell-off cascade that has continued to put bearish pressure on the cryptocurrency. This, in turn, has affected the broader market, causing altcoins to suffer major losses during this time. While there are still hopes for a quick recovery, analysts have warned investors that the Bitcoin price is more likely to crash further before it rebounds. Nevertheless, expectations remain that the digital asset will hit a bottom and rally again.
Why A Bitcoin Price Crash Is Likely Before A Recovery
Pseudonymous crypto analyst Setupsfx has shared a possible roadmap that the Bitcoin price could follow in order to clear $126,000 again and rally to new all-time highs. Unlike those expecting a quick rebound, the crypto analyst has warned that it is likely that the digital asset will see a major crash first before there is any green on the chart.
With the Bitcoin price having already breached $90,000, the optics continue to remain weak for the pioneer cryptocurrency. As a result, the analyst forecasts further decline as profit-taking exacerbates. The next major levels now lie at $60,000-$70,000, which would mean an over 20% crash for the Bitcoin price again.
However, the crash to $60,000 does play into the next bullish trend as the analyst expects this to be the bottom. Thus, buying BTC around the $60,000-$70,000 level would be ideal, Setupsfx explained. This is because once the relief rally begins, the analyst expects the price to hit as high as $150,000 as a result.
Nevertheless, the crypto analyst warns investors to always take the volatility of the Bitcoin price into account when investing. So, it is important to have adequate risk management practices in place, as there is no guarantee that the digital asset could play out as expected.
Analysts Bearish In The Short-Term Only
The Bitcoin price crash before a recovery theory is also seconded by crypto analyst Hyperkane, who also shared their own expectations for the cryptocurrency. The analyst also sees the Bitcoin price crashing down below $70,000 before a bottom is established.
Across the board, though, the consensus looks to be that the Bitcoin price could start to rebound once it’s down around 40% from its all-time high. Therefore, it is highly likely that the sell-offs will continue as investors dump their BTC in the hopes that they will get to buy back the cryptocurrency at a much lower price.
Featured image from Dall.E, chart from TradingView.com
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