The analyst further stated that he expects BTC to experience another interim bounce at around $60,000 before the Bitcoin price crash to $50,000. Meanwhile, CrediBULL Crypto expects a rejection soon, meaning a price correction from the $66,000 range could be imminent. In another X post, the analyst provided more insights into why he was still bearish.
He stated that the recent BTC rally was primarily driven by the perpetuals market, not the spot market. He highlighted the divergence between the perp and spot Cumulative Volume Delta (CVD) and how short liquidations helped fuel the move up.
CrediBULL Crypto added that the spot market has already begun selling off the spike while the open interest (OI) rises and perp CVD continues to climb without funding.
Basically, the analyst suggested that a Bitcoin crash is likely to happen after this rally since the price surge has pushed the flagship crypto into the local supply from the last breakdown. This means that many sellers are waiting to sell at this level, with such selling pressure likely to send BTC tumbling again.
Another crypto analyst, BTC Insider, shares a similar bearish sentiment as CrediBULL Crypto. He predicts that there will still be a price crash to $50,000. The analyst stated that he will still be looking to short the flagship crypto even if its price reaches between $68,000 and $70,000.
BTC Is At A Crucial Point
Crypto analyst Ali Martinez also suggested that the Bitcoin price is at a crucial point, stating that the flagship crypto is, for the fifth time in recent times, testing its 200-day moving average (MA). A rejection at this level would likely spark another price crash, although it remains to be seen if it would drop to $50,000 as CrediBULL Crypto predicts.
Martinez had earlier predicted that there could be a Bitcoin price crash to as low as $57,000 once the crypto rebounds to $66,000, as it has done. However, he isn’t as bearish as CrediBULL Crypto as he expects BTC to break out to a new all-time high (ATH) of $78,000 once it retests $57,000. For now, the analyst believes that Bitcoin would need to hold above $65,000 to confirm a bullish reversal.
This aligns with a CoinGape analysis, which noted that a weekly candlestick close above the $65,000 support level could propel a rally to $70,000.
Meanwhile, based on an analysis by trading firm QCP Capital, BTC is on the right path to hitting a new ATH. The firm noted that the crypto is following historical patterns. In 2016, BTC didn’t begin its rally until three before the US election and its price doubled by January 2017.
Something similar happened in 2020 as the Bitcoin price started rallying from $11,000 just three weeks before the US election, reaching a high of $42,000 by January the following year. As such, BTC could well be on its a way to a new ATH which it could reach by January next year.