According to analysts, with a possible downside wick, Bitcoin price can drop to $ 44 thousand. The sighting of a double top formation before Bitcoin slumped below $48,000 on Dec. 28 suggests to some analysts that it could drop to $44,000 before continuing the uptrend.
Will Bitcoin price drop to $44?
It looks like the end-of-year rally that many crypto traders are hoping for will have to wait until 2022, as the Bitcoin (BTC) bears took the lead on Dec. 28 and dragged the BTC price below the support at $48,000. Let’s take a look at what has been said about the reasons behind this latest fix. There is a bearish RSI divergence ahead of the reversal. Insight into the technical reasons for the year-end correction for Bitcoin price was offered by options trader and alias Twitter user John Wick, who posted the chart below highlighting the bearish trend. The statements of crypto analyst Wick on the subject are as follows:
We created a double top, clearly defined by the bearish RSI divergence. Notice how the price action increases when the RSI is bearish. We also had a bearish Alpha Thrust & Squeeze scam.
Possible drop to $44,000 possible? Bitcoin’s ongoing struggles with the 21-week exponential moving average (EMA) are highlighted in the chart below by alias market analyst Rekt Capital. The weekly chart shows the difficulty BTC is having to break above the technical indicator.
According to Rekt Capital, the price action for Bitcoin resembles a scenario that occurred in May when “Bitcoin is experiencing a multi-week consolidation between two bull market EMAs,” and the price could revisit the $44,000 level soon. “Historically, BTC has shown negative wicks to the orange area during this red retest, so there is room for another revisit to orange,” the analyst says. “Markets Are Being Beaten” 3 Analysts Share Their Gold Expectations!