Bitcoin (BTC) prices continue to worry traders and investors. Recent analyst forecasts point to potential significant fluctuations and trends.
Analysis by Ali Martinez
Popular crypto analyst Ali Martinez stated that Bitcoin could drop to $40,600. He explained this with signals from the TD Sequential indicator, predicting a potential correction. If the support level at $51,000 is breached, Bitcoin may drop significantly. As of the writing, BTC was priced at $55,613 in the morning and $58,386 near midnight. Martinez noted that if the support level at $51,000 is breached, the BTC price may fall to $40,600. TD Sequential is designed to identify potential trend reversals and momentum exhaustion in price movements.
Stochastic RSI Signals
Martinez also noted using the Stochastic RSI indicator on a two-month time frame chart. Stochastic RSI indicated a possible trend reversal from bullish to bearish. Historical data from the past 10 years show that such a reversal often precedes significant corrections. Stochastic RSI is an oscillator that measures momentum by comparing the closing price of Bitcoin to its price range over a certain period. The high sensitivity of the indicator helps identify when an asset is overbought or oversold. According to statistics, the probability of a correction occurring in such a scenario is 75.50%.
Opinion of Alex Thorn and QCP Capital
Alex Thorn warned that September could be the worst month for Bitcoin based on historical data. In 7 out of the last 10 Septembers, BTC experienced significant declines; however, Thorn says October traditionally brings positive results. Analysts at QCP Capital also noted that the volatility of BTC and ETH prices is increasing, which may indicate significant fluctuations in the near future. The Volatility Momentum Indicator (VMI) shows that the market has entered a period of increased volatility, which is important for traders who expect significant price movements in the market.
Analysts and experts continue to monitor developments in the cryptocurrency market, highlighting the importance of closely tracking key support levels and technical analysis signals. Traders and investors should be prepared for possible corrections and sudden trend changes.
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