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Analyst Warns Of Major Bitcoin Crash to $52,000 As Short-Term Support Weakens

The price of Bitcoin risks a drop to as low as $52,000 after a major support area continues to weaken.

Bitcoin Flash Crash

In the past 24 hours, Bitcoin’s price dropped below $60,000 for the first time since late February. As CoinTab reported, that drop was led by market fears triggered by war threats between Iran and Israel.

Nonetheless, the recent drop has also increased the chances of Bitcoin’s price going as low as $52,000, according to widely followed market analyst Alan Santana. The cites constant testing of Bitcoin’s current short-term support as the basis for the bearish price prediction.

Precisely, Santana notes that the support level, which exists between $59,000 and $63,000, has been tested multiple times in the past few weeks. A common technical analysis rule dictates that a support range that the continuous testing of a support level leaves it prone to failing if a sell-off accelerates.

In the case of Bitcoin, it appears that bears have gained an upper hand on that crucial support level, causing BTC to trade within that range multiple times in the past week. If and when sellers push Bitcoin below that range, Alan Santana predicts that the zone around $52,000 is BTC’s next reliable support.

Bitcoin Tests Support Severally
(Source: TradingView)

Worth noting is that the analyst has been generally bearish on Bitcoin in the past week. He noted that Bitcoin is having one of its most bearish sessions in over 250 days and claimed that the bullish action over the past few months requires that BTC retraces as low as $44,000 in the months ahead.

Bitcoin Defies The Trend, Bounces Back Above $65,000

Despite the bearish Bitcoin price prediction, the top cryptocurrency has defied the trend to bounce back from its recent lows. At press time, BTC has recovered from below $60,000 to trade above $65,000. The uptrend may be linked to positive market sentiment, as today marks the long-anticipated Bitcoin halving, which happens once every four years.

Following the latest halving, the supply of newly issued bitcoins per block will reduce from 6.25 BTC to 3.125 BTC. Bitcoin miners have largely held onto newly mined coins in anticipation that the halving will have its historically proven impact of boosting the price of BTC in the coming months.

Wilfred Michael

Wilfred Michael is a highly experienced cryptocurrency journo. He has spent more than five years covering this exciting new technological space, and relishes the opportunity to play a role in driving what he considers to be the future of finance.