Bitcoin's price fell to new lows of $36,000, prompting analysts to call for a "Hail Mary close above $39,600" to avert a bearish shift in the market structure.
The price of Bitcoin (BTC) continues to fall, causing an even sharper correction in altcoins and DeFi tokens. At the time of writing, the price of Bitcoin has dropped to its lowest level in six months, and most analysts are not optimistic about an immediate recovery.
According to data from TradingView, a wave of selling that began late in the day on January 20, continued until midday on Friday, when BTC hit a low of $36,600.
Here's a look at what analysts are saying about the current downturn and what might be in store in the coming weeks.
Consolidation is expected to occur between $38,000 and $43,000, according to traders.
Many crypto traders are predicting various negative outcomes as a result of BTC's sudden price drop, such as an extended bear market. Others, such as independent market analyst 'Rekt Capital,' are not so quick to declare that all is lost.
According to Rekt Capital, Bitcoin (BTC) is just squeezing inside the $38,000-$43,100 range, but it must maintain this level of support to avoid falling into a lower consolidation range.
Also, Rekt Capital said that technically, the $38,000 support level is what keeps BTC from entering the $28,000-$38,000 consolidation range. Bitcoin last consolidated in this range in the first and second quarters of 2021.
In addition, David Lifchitz, managing partner and chief investment officer at ExoAlpha, commented on the BTC price action from a purely technical standpoint, noting that the giant head and shoulders pattern for BTC is now completed with the neckline broken with BTC at $38,300.