The start of the week displayed the possibility of a pre-Christmas rally but as the trade proceeded, the bears gained huge strength. The Bitcoin price, which had broken above the bullish pattern, has plunged and reached lower support. In such a scenario, the markets are largely considered to be entering the bearish range; hence, the BTC price is expected to drop back below $90,000. However, the technicals have turned bearish, which may validate the bearish scenario for the token.
3 days of BTC weakness have wiped out more than 3 weeks of altcoin gains. Moreover, the token is threatening to lose each of the lower supports in the times when it was just days away from confirming its first price discovery correction. Now over $1 billion has been evaporated from the markets, with the ETFs recording over $671.9 million outlaws in a single day as BTC price drops hard.
Does this suggest Bitcoin dump could still get worse?
A popular analyst, Crypto Rover, compares the current price action to that of the previous year in December 2023 and suggests it could be the best buying opportunity. The BTC price has witnessed a similar dip after the bulls triggered a strong rebound in October. The pullback drained nearly 15% then, which resulted in a rise of over 90% in the next couple of months, forming new highs close to $74,000. However, to trigger the upswing, the price further dropped by another 10% to reach the bottom.
Therefore, if the BTC price mirrors the previous rally, then the price is speculated to drop by another 10% and mark the bottom between $85,000 and $88,000. Hence, the bulls are expected to enter and trigger a strong rebound, forming new highs above the speculated ATH at around $125K. However, the price has formed yet another megaphone pattern and if it rebounds from the current range, a rise above $110K could be imminent, squashing the bearish narrative.
