7 hour ago
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Analyst Suggests Bitcoin Could Drop to $40,000 Amid Bearish Setup
Crypto analyst Stockmoney Lizards suggests Bitcoin's current market structure offers bears an opportunity to short the price down to $40,000. This view is based on a chart showing Bitcoin falling below a key resistance level, similar to a bearish pattern from 2022.
- Bitcoin's recent breakdown is compared to the 2022 pattern, with a rejection just above the $100,000 zone and a drop below the weekly EMA50.
- The current setup implies a potential decline to $40,000, indicating a possible 55% loss from its current trading price of $90,240.
Despite this analysis, Stockmoney Lizards clarified that his suggestion was exaggerated and does not foresee a deep bear market collapse.
- He predicts Bitcoin may consolidate and possibly touch local lows but expects a midterm upward movement rather than prolonged decline.
- The worst-case scenario is touching the weekly EMA200, which he believes doesn't signify the end of bull markets.
Previously, Stockmoney Lizards indicated that Bitcoin is nearing a major technical pivot at the weekly EMA50, expecting a bullish move by the end of December and into Q1 2025. Reclaiming the weekly EMA50 is crucial for initiating the next phase of bullish momentum.