Bitcoin’s price has seen a significant decrease, falling by approximately $1650 from a peak of $73835 on March 14th to around $61650 as of May 9th. This decline is attributed to a lukewarm response to new Bitcoin and Ethereum ETFs in Hong Kong, a strict interest rate policy from the Federal Reserve, and decreased flows into US Bitcoin ETFs.
The current correction in Bitcoin’s price is within a falling wedge pattern, indicating a possible drop to $54,000 by June if this consolidation continues. The wedge’s apex near Bitcoin’s 200-day EMA provides support, potentially leading to a rebound.
Technical analysis of Bitcoin’s daily chart suggests a target of $63,880, a 3.5% rise from current levels. This could present a buying opportunity for investors looking to capitalize on potential market declines.
Veteran trader Peter Brandt predicts Bitcoin may dip into the higher range of $40,000-$50,000, citing a descending triangle pattern. A breakdown below the triangle’s lower trendline could lead to a drop towards $48,550, more than 20% lower than current prices.
The ongoing correction in Bitcoin’s price mirrors the 2021 pattern, with a decreasing weekly RSI breaking a multi-month upward trendline. This indicates a potential drop to around $46,110 by June, aligning with the 0.618 Fibonacci retracement line. A decisive break below the 50-week EMA could result in prices falling to the 200-week EMA around $32,410, marking a 58% decline from current levels.
In conclusion, market dynamics and technical patterns suggest the possibility of further declines in Bitcoin’s price, but also highlight opportunities for strategic buying based on support levels and pattern breakouts.