The current Bitcoin crash could last nearly two more months based on historical price movements, before a new bullish chart pattern could lead to a price breakout, according to analysts.
Bitcoin’s downside deviation could last nearly 2 months: analyst
Bitcoin (BTC) price is currently experiencing a downside deviation, that could last nearly 2 months, according to popular analyst Rekt Capital.
The analyst wrote in an Aug. 3 X post:
“Bitcoin has returned to the Range Low area, with scope still for additional downside deviation in the near future. And currently, at ~110 days after the Halving, Bitcoin is slowly getting closer to its historical breakout point of 150-160 days after the Halving.”
Bitcoin price briefly crashed below $50,000 on Aug. 5, after the Bank of Japan announced that it was raising its interest rate from 0% to 0.25%.
Japan’s decision had a direct impact on the US stock market and Bitcoin price as well, as traders were borrowing Japanese Yen at low interest rates to buy assets in the US market.
The crypto market experienced a $510 billion loss in total market capitalization, marking the biggest three-day sell-off in over a year.
Related: Crypto market crash triggered by 'aggressive' selling by Jump Trading - report
Bitcoin could break out from a macro bull flag after the downside deviation
Despite the gloomy outlook, an emerging bullish chart pattern is inspiring more optimism among crypto holders.
Bitcoin price could see a breakout due to an emerging bull flag, a bullish chart pattern that is used to spot upcoming rallies, according to popular analyst Satoshi Flipper, who wrote in an Aug. 4 X post:
“The most epic bull flag in $BTC history has been forming for 7 months now, imagine being upset about this.”
Bitcoin also seems to be forming a bull flag on the monthly chart, according to crypto analyst Elja, who wrote in an Aug. 4 X post:
“BTC giant bull flag. The Bitcoin breakout pump will be legendary.”
However, in the shorter term, Bitcoin’s downtrend could potentially extend to the $42,000 mark, according to Alex Kuptsikevich, senior market analyst at FXPro.
The analyst told Cointelegraph:
“At its lowest point, Bitcoin dipped below its 50-week moving average. Without strong buyer support right now, it goes even lower, and it would trigger an even more active sell-off as it did in late 2021 and early 2022. If it doesn’t hold either, it’s worth preparing for a failure toward $42K.”
Related: $35T US national debt could bolster Bitcoin’s adoption as ‘hard money’
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
