Bitcoin faces the mother of all crashes as this support gets retested

After briefly plunging below $60,000, Bitcoin (BTC) has rebounded, aiming to sustain its gains above the $65,000 mark. Notably, the cryptocurrency has exhibited heightened volatility leading up to the halving event, yet uncertainty looms regarding its future trajectory.

In this regard, in a TradingView post on April 19, crypto trading expert Alan Santana forecasted a grim outlook for Bitcoin, hinting at the possibility of ‘the mother of all crashes’. This projection is rooted in Bitcoin’s current support levels.

Santana highlighted Bitcoin’s struggle with a critical support range between $59,000 and $63,000, emphasizing that it has faced over five challenges recently, pointing to a weakening position for the cryptocurrency.

Bitcoin price analysis chart. Source: TradingView/ Alan Santana

“The more often a support level is challenged, the weaker it becomes.<…> The fact that this level continues to be challenged tells us that the bears have the upper-hand. If the bulls were winning, we would be seeing resistance being challenged rather than support.<…> Prepare for the crash,” the expert warned.

Bitcoin’s levels to watch

According to Santana’s analysis, Bitcoin may encounter a potential rebound at the EMA50 level, although the future remains uncertain. He cited two critical support levels in the event of a sustained downturn: $44,400 and the range between $37,000 and $33,333, both serving as potential targets for bearish momentum.

Overall, Bitcoin has experienced a resurgence in its price amidst reports suggesting de-escalating tensions in the Middle East. The recent spike in geopolitical tensions had previously prompted a sharp decline in Bitcoin’s value from the $70,000 threshold.

Additionally, the upcoming halving event is contributing to market dynamics, with miners exhibiting bearish tendencies. Miners have been offloading their Bitcoin holdings in anticipation of reduced rewards post-halving, potentially rendering some operations unprofitable.

Bitcoin price analysis

As of press time, Bitcoin traded at $65,290, reflecting daily gains of approximately 4%. However, on a weekly basis, Bitcoin has incurred a decline exceeding 8%.

Bitcoin seven-day price chart. Source: Finbold

Given Bitcoin’s short-term resilience, Santana’s insights warrant consideration, particularly as Bitcoin continues to test the crucial $63,000 support level, indicating the maiden crypto is not out of the woods yet. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.