Bitcoin Price Analysis: Potential Targets for BTC Correction
Bitcoin’s Price Correction: How Low Can It Go?
Bitcoin’s (BTC) price has seen a decline of approximately 3.70% week-to-date, reaching around $61,650 on May 9. This marks a significant drop of approximately 16.50% from its record high of $73,835 set on March 14.
The recent decrease in Bitcoin’s price can be attributed to various factors, including the lackluster response to the market debut of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong, the United States Federal Reserve’s higher for longer interest rate policy, and diminishing flows into spot Bitcoin ETFs in the United States.
Analysts are now speculating on how low Bitcoin’s price can go in the ongoing corrective cycle. One analysis suggests that Bitcoin’s current price correction is unfolding within a falling wedge pattern, with a potential target of around $54,000 by June if the consolidation continues.
Interestingly, the wedge’s apex point aligns with Bitcoin’s 200-day exponential moving average (200-day EMA), offering a double-layered support for the price to potentially bounce back. This pattern typically results in the price breaking above the upper trendline and rising by the maximum distance between the upper and lower trendlines.
Another veteran trader, Peter Brandt, expects Bitcoin’s price to dip into the higher end of the $40,000 to $50,000 range, citing a descending triangle pattern that has developed after the cryptocurrency’s failure to reclaim its previous record high of $69,000.
Additionally, a technical analysis based on Bitcoin’s 2021 fractal indicates more potential downside, with the possibility of the price falling towards $46,110 by June. A decisive break below the 50-week EMA could send the price even lower, towards the 200-week EMA at around $32,410.
Overall, the current market conditions suggest that Bitcoin’s price could experience further declines in the coming weeks, presenting potential buying opportunities for investors looking to capitalize on the dip.
