A new bearish signal has been signaled by a bitcoin trader who called the $48K BTC price high.
Bitcoin (BTC) could lose a lot if a BTC price chart pattern plays out as usual, warned veteran analyst Philbphilb.
In its latest update on X (formerly Twitter) on January 19, trading suite founder DecenTrader sounded the alarm over Bitcoin's monthly lows.
Bitcoin's three-day chart indicates the beginning of a decline
BTC price action dropped to $40,600 overnight, almost a 20% retracement from last week's local high, data from Cointelegraph Markets Pro and TradingView confirms.
While it is continuing to bounce back above $41,000, market strength is convincing few traders and analysts in the short term.
Of particular concern is Filbfilb, which has a three-day deadline.
Crossing a comparison chart, the three-day chart shows a further downtrend when it crosses below the daily 50-time simple moving average (DMA). The chart has reached Bitcoin's all-time high of $69,000 seen in November 2021.
“3-Day Red Break Below 50 DMA. There are few examples of this phenomenon in the past,” he commented.
Previously, Filbfilb successfully speculated on Bitcoin at $48,000 around the announcement of the approval of the United States-based Bitcoin exchange-traded funds (ETFs). There is a similar BTC price goal of halving the block subsidy for April.
Bitcoin traders beware
Meanwhile, the overnight dip sent BTC/USD below its 2024 opening price.
Related: Did $5B Bitcoin Well Sell Trigger a Post-ETF BTC Price Crash?
Analyzing liquidity conditions, financial analyst Tedtalksmacro suggested $40,000 as the next critical level.
BTC auctions are going up now and the offers are very easy, 44k seller is still there…
463 BTC for $40,000 (~$18.5M USD) on Binance. pic.twitter.com/n2hBesoY4C
— Ted (@tedtalksmacro) January 18, 2024
According to Cointelegraph, various market participants see the mid-range of $30,000 as the potential bounce zone.
“I think we need 1 more (smaller) leg before we start climbing. Last nights do not convince me…” wrote the creator of the day, the creator of the famous trader CryptoEd trading group CryptoTA, before an in-depth analysis.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
