Beware: Bitcoin could Plummet to $26,000 If this Chart Pattern Plays out

Vinod Dsouza
bitcoin btc fall to $26000
Source: Pixabay

Bitcoin slipped by 6% today and is now trading below the $40,000 mark in the indices. The top crypto shed all its weekly profits and is now at its weekly lows. Several analysts predicted that BTC could slip to $30,000 and start unending woes with a string of losses. Also, a new report from Bloomberg is out today that suggests BTC could nosedive straight to $26,000 if a “bearish flag” technical pattern plays out.

The report suggests that if Bitcoin slips below the $38,000 mark, it needs to hold on to its resistance levels of $36,700. However, if BTC doesn’t hold on to its resistance levels of $36,700, then the next stop could be a nosedive towards $26,000.

Source: Bloomberg

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“Immediate support in the pattern for the largest cryptocurrency, which is currently trading around $38,000, lies at $37,582. Under which the next key level is the lower end of the flag around $36,700. Any break of the flag will bring $26,000 into focus,” read the report from Bloomberg.

The crypto market did not see a bull run this year as top coins either plummeted or traded sideways. The trend remains the same even after four months and the ‘Fear & Greed Index’ shows sentiments of ‘Extreme Fear’.

The cryptocurrency market has been slipping this week after a decent start during the first week of the month. Read here to know the top 4 reasons why the crypto market is crashing today.

Read More: Bitcoin not “inefficient” anymore? US Treasury Secretary flips her stance

Also, several top cryptos are down more than -40% from their all-time highs and shed all profits generated last year. Read here to know how much top cryptos have bled from their all-time highs.

Bitcoin: A Walk on Razor’s Edge

bitcoin btc crash
Source: Pixabay

As per Bloomberg’s report, Bitcoin is now walking on a razor’s edge and a failure to hold on to its resistance levels can send the crypto on a nosedive.

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Even BitMEX co-founder Arthur Hayes wrote in his blog, “This is crypto, and magic internet money corrupts the brain so let me … attempt to sober you up.” He predicted that Bitcoin will fall to $30,000 and had previously stated that Ethereum will fall below $2,500.

Also, nearly $439 million worth of cryptocurrencies were liquidated in the past 24-hours. At press time, Bitcoin was trading at $40,213 and is down -3.3% in the 24-hours day trade. The leading crypto is down -33.0% over the last 365-trading days.