Analyst says Bitcoin’s 2024 ‘capitulation is not over’, sets new bearish targets

Bitcoin (BTC) is currently undergoing a notable correction as market fears surrounding the overall economy’s health, exacerbated by disappointing jobs data, continue to grow.

Amid the current sentiment, cryptocurrency trading analyst Alan Santana has warned that investors should brace for further losses below the crucial $50,000 mark.

In a TradingView post, Santana highlighted that Bitcoin’s 2024 trading pattern is dominated by a bearish trend, which he referred to as a “capitulation event.”

Santana’s outlook suggested that the correction phase, which has already lasted over four months, could extend for another seven to nine months. He has previously noted that bearish waves tend to unfold at least twice as fast as bullish trends.

Given that Bitcoin’s last bullish phase lasted 16 months, the expert estimated that the full bearish wave could conclude within five to eight months.

With the correction already underway for several months, the next few weeks may be critical in determining Bitcoin’s long-term direction.

Bitcoin’s bullish outlook

While Bitcoin is experiencing this correction, Santana remained optimistic about altcoins, stating that the “altcoins vs. Bitcoin” market is safe for now.

He also pointed to several key market indicators that investors should monitor. For instance, Santana noted that the highest bearish volume for 2024 occurred in January, followed by strong bullish activity in March.

The expert also observed that after a recent spike in bearish volume, overall trading volume has declined, signaling waning interest from market participants.

At the same time, the expert is of the view that many newer investors, who entered the market amid hype surrounding Spot Bitcoin exchange-traded funds (ETF) and media buzz, may be forced to capitulate.

Bitcoin next price targets

Based on the next price movements, Santana foresees a potential drop to $40,000 or lower, with a bottom possibly around $30,000. He also expects Bitcoin to begin an upward trajectory after the bottom is established, sharing long trade ideas for the coming months.

However, he cautioned that timing the exact bottom may be difficult, but believes there will be ample opportunity for strategic long-term buys.

In the meantime, Santana emphasized patience and planning as the market navigates the final stages of this bearish phase.

Meanwhile, crypto trading expert Michaël van de Poppe, in a September 7 analysis on X, suggested that there remains upside potential for Bitcoin, but only after notable corrections.

He predicted that Bitcoin might correct to $53,000 before entering a two-year bull run.

In summary, attention is now focused on Bitcoin bulls and their ability to push the cryptocurrency past the $55,000 resistance level. Notably, if the bears sustain the price below this mark, it could validate the ongoing downtrend.

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

Source