Bitcoin (BTC) seems to be on the verge of significant market changes, as crypto analysts are raising alarms about its potential failure to capitalize on recent highs. This situation could lead to sharp corrections in the weeks ahead. While the long-term sentiment remains optimistic, BTC’s current upward trend may face disruption, potentially derailing the rally.
The Threat of a 50% Crash
In a warning shared on social media, prominent crypto analyst Tony Severino cautioned investors that failure to breach previous record highs could trigger a drastic price decline, wiping out over 50% of BTC’s current value.
Severino utilized Elliott Wave Chart Analysis to illustrate Bitcoin’s current standing within what seems to be an extended flat correction, indicative of an intermediate wave 4. His analysis suggests Bitcoin is nearing Wave B, which could precede a sharp drop in Wave C.
He noted parallels between Bitcoin’s present price behavior and the extended flat correction experienced during 2021-2022, which characterized primary wave 4. Back then, Bitcoin peaked at wave B before cascading into a severe bear market.
Similar patterns are evident in Bitcoin’s current chart structure. The recent surge in cryptocurrency prices might be misleading, resembling a peak that could precede a significant drop, possibly around 50%, down to nearly $118,000.
It’s essential to clarify that Severino’s warnings don’t stem from a purely bearish outlook but rather from a place of cautious optimism. He maintains a strong long-term bullish perspective on Bitcoin, emphasizing the necessity for BTC to reach a new all-time high to avert the expanded flat scenario.
If the market fails to produce this upward movement, the correction could dominate, slowing the next upward impulse leg. This could also significantly impact the broader crypto market, halting momentum during a long-anticipated altcoin season.
Setting Targets for Bitcoin’s Next ATH
Bitcoin has sparked renewed enthusiasm after recently surpassing $123,000, despite a pullback to more than $118,000. Experts, including X’s “crypto professor,” have suggested that the cryptocurrency is gearing up for new heights.
The same expert set Bitcoin’s next target at $129,948, which corresponds to the 1.618 Fibonacci expansion level. Given BTC’s current trading price of $118,612, this signals a potential increase of 9.6%. Notably, analysis reveals previous consolidated zones around $110,000 and $100,000, which align with Fibonacci retracement levels and could act as support if retested.
