Bitcoin Dips Below $41,000 — More Price Drop to Come, or Rebound Expected?
With Bitcoin dipping below $41,000 we have gotten a bearish signal. More downside to come?
Key Takeaways
- Bitcoin slides below $41,000, making a lower low, according to chart data.
- Price action structure turning bearish.
- Two scenarios ahead, but both point to more downside.
After reaching $49,000 at its peak on January 11, the price of Bitcoin slid to $41,720, where it attempted to stabilize. Today, January 19, it fell lower, reaching $40,630 at its lowest. This price difference of only 2.3% isn’t significant by its amount but rather by its price structure.
This lower low could indicate a much larger downfall yet to come. Our previous analysis examined the possibility of Bitcoin going to $36,000 and even lower. With today’s price action development, this outcome looks highly likely.
BTC Price Analysis
The price of Bitcoin made an upward spike, attempting to break above the $47,000 resistance, and at first, it appeared that it had the strength to do so. However, the rise to $49,000 was only temporary, leaving a wick on the daily chart.
This quick downturn indicated that sellers were present at those levels, and with the consequent downfall to the $41,000 area on a strong move, it was shown that the upside wasn’t sustainable.
As the price started to move sideways, around $41,000, there was a strong chance it could find support and continue its upward journey, breaking the resistance on the next move. But with today’s lower low, this possibility was invalidated.
From its January 11 peak, we saw a five-wave move to the downside, indicating impulsiveness and a likely downtrend continuation.
BTC Price Prediction
Examining the Bitcoin wave structure further, we can expect another lower low, potentially at the $39,200 area, which would mark the completion of the first descending move in a larger downtrend.
We can see a recovery to $43,100, which would be an upward correction in the larger downtrend and serve to make the first lower high. If this plays out, then another even stronger downtrend would start and lead the price of Bitcoin to its next significant horizontal zone of around $36,000.
The corrective stage of BTC could end on this low, making a solid bounce and heading to another uptrend. But there would also be a chance that we might see an even lasting correction with Bitcoin’s price falling to $26,800.
What happens at the $36,000 will be paramount for these future expectations. A new starting uptrend will likely be higher if it bounces strongly. But if it breaks the level and continues further below it, it would signal a much larger correction is in play.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
