Bitcoin Price Prediction: BTC Could Lose Another 18% To Trade Below $40K

Nancy Lubale
December 13, 2021
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BTC coin

Bitcoin (BTC) is trading 30% below its November 10 all-time high (ATH) above $69,000. Bitcoin price has undergone a series of significant corrections that has it lose several crucial levels. If Bitcoin price experiences two corrections like those that have been experienced over the past one month, the big crypto could tank even further.

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Bitcoin Price Correction As Bears Target The September 21 Range Low

BTC/USD continues to trade within the confines of a descending channel at $48,767 with bears focused on undoing the gains made over the weekend.

Technical outlook as seen on the daily chart point to a possible deeper correction if the pioneer cryptocurrency cannot break out of the descending parallel channel. Thus, if Bitcoin price sees corrections of the magnitude seen between November 15 and 16, on November 26, between December 3 and 4, and the recent on December 09, it might fall to areas below the $40,000 psychological level.

This will be particularly possible if Bitcoin closes below the immediate boundary around $47,685 embraced by the middle boundary of the descending channel. If this happens, BTC price might drop to tag the lower boundary of the channel at $43,710.

Bitcoin might, however, find support at $46,790 embraced by the 200-day Simple Moving Average which might cause it to rise back to tag the middle boundary.

However, immense selling pressure is likely to overcome the support at the 200-day SMA and at the lower boundary of the channel which may cause a deeper correction in Bitcoin price with the September 21 range low at $39,984 in the offing. If this happens, Bitcoin could drop as much as 18% from the current price.

BTC/USD Daily Chart

Bitcoin price Daily Chart

Note that the fact that Bitcoin price is trading below crucial levels such as the $60K and $50K psychological levels as well as the 100- and 50-day SMA at $54,572 and $58,194 suggests that BTC bulls face stiff competition upwards, validating the pessimistic outlook.

Moreover, the down-sloping moving averages and the position of the Moving Average Convergence Divergence (MACD) Indicator below the zero line in the negative region accentuate Bitcoin’s downward outlook.

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Looking Over The Fence

On the upside, Bitcoin price requires support from the wider market to invalidate this bearish outlook. With Bitcoin adopters like MicroStrategy adding to their Bitcoin reserves and margin traders remaining bullish as reported by Cointelegraph, the dip might be here suggesting a possible price rebound.

For this to happen, Bitcoin has to break out above the descending parallel channel by closing above its upper boundary at $51,659.

If this happens, BTC will reclaim the crucial $50,000 level with the next logical option being $60K and thereafter a rise to new all-time highs, which, according to some analysists, might be seen in early 2022.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nancy is a successful finance, crypto analyst and content writer with many years of writing experience finance and blockchain fields. Nancy has been producing quality content for websites in the cryptocurrency industry including Krptotrends, Forexcrunch, InsideBitcoins and Economywatch. She is a Certified Cryptocurrency Expert (CCE) from Blockchain Council. Her interests are in cryptoasset research and technical analysis, Fintech, Blockchain, DeFi, NFTs and Personal Finance. Follow her on X@NancyOmanga for more insights
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.