An esteemed cryptocurrency analyst, Eric Krown, has sounded an alarm for Bitcoin (BTC) investors, indicating that the digital currency may experience a downturn in February. Despite its remarkable streak of positive momentum, including five consecutive increases since September 2023, Krown suggests that this trend might be on the verge of a reversal. His recent analysis, based on historical patterns and current chart indicators, points towards an upcoming period of adjustment for Bitcoin.
Historical Patterns and Current Trajectory
In his retrospective review, Krown observes that Bitcoin has often followed a sequence of three bullish months before witnessing a correction. With the current pattern already extending to five months, the virtual currency stands at a juncture that could potentially trigger a downturn. Krown’s analysis further identifies signs of uncertainty in Bitcoin’s monthly chart, suggesting that the rise since September may have proceeded without significant retracement, leading to an overextended market.
Technical Indicators and Price Action
Krown has scrutinized the five-day Bitcoin chart, noticing a lack of volatility and technical markers that hint at a downward tendency. Although he acknowledges the possibility of a short-lived surge beyond the $44,000 or $45,000 mark, he underlines the pivotal nature of the $46,000 level, whose breach would solidify an uptrend. Conversely, failure to cross this threshold could result in a downward correction.
The crypto expert anticipates that Bitcoin could see its value shrink to approximately $40,000 before any chance of a rebound. He cautions investors to keep a close eye on crucial price levels to confirm the asset’s direction. Krown has delineated a severe drop scenario that could see Bitcoin plummet to roughly $28,000 if adverse conditions persist.
Currently, Krown indicates that Bitcoin is at a pivotal point, having receded 12% from its peak the previous month, and is now on the brink of breaching the vital $40,000 support level. Should Bitcoin fall below this threshold, the next significant support lies around the $30,000 mark, marking a considerable downturn in value.