Bitcoin’s Price Plunge

Bitcoin’s price has seen a significant decline of over 17.5% since reaching a record high of $73,800. It has now reached a two-week low of $60,760. This drop in price coincides with expectations that the Federal Reserve will maintain its key interest rates within a certain range. The continued withdrawals from Bitcoin exchange-traded funds are putting further pressure on its price.

There is speculation about how low Bitcoin’s price could go during this correction cycle. It is possible that the price could break below the $60,000 support level by the end of March. The 50-day exponential moving average (EMA) is currently around $58,780 and has historically provided support during bull market corrections. It aligns with Bitcoin’s horizontal support level of around $59,310, which has previously led to a significant price surge.

Market analyst Rekt Capital believes that Bitcoin’s price could continue its correction and potentially drop to $40,000. This prediction is based on fractal analysis and compares the current correction to patterns observed before previous halvings. Four years ago, Bitcoin experienced a 50% retracement leading up to the 2020 halving, which was exacerbated by the COVID-19 pandemic. It stabilized around $10,000 for the rest of the halving year, setting the stage for a bull market in 2021.

Another fractal analysis suggests that Bitcoin may consolidate within the $50,000-60,000 range in the coming days or weeks. Fibonacci retracement levels, which have historically acted as support levels for Bitcoin, indicate that the next support level could be around $50,000. The 0.618 level, also known as the “Golden Ratio,” has often been tested as support after establishing a record high.

Bitcoin’s price has experienced a significant decline after reaching a record high. There are predictions that the price could continue to drop below $60,000 and potentially reach $40,000 based on fractal and Fibonacci analysis. These analyses also suggest that the correction could eventually lead to a bullish reversal and a new record high for Bitcoin.