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Bitcoin Analysts Expect Bitcoin to Plunge by Another 20%, Here Are Reasons

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Fri, 12/10/2021 - 09:08
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Arman Shirinyan
Technical analysis suggests that Bitcoin has a chance of diving further due to existing selling pressure on the market
Bitcoin Analysts Expect Bitcoin to Plunge by Another 20%, Here Are Reasons
Cover image via stock.adobe.com

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The global correction on the cryptocurrency market that put the majority of digital assets into deep consolidation was a cold shower for all crypto traders that could have gotten used to strong pumps and infinite bullruns, but some analysts note that the current downfall is far from over.

Bitcoin technical analysis

According to Katie Stockton of Fairfield Strategies technical analysis firm, the long-term picture on the cryptocurrency market remains bullish even after the majority of digital assets on the market took a strong blow.

The first breakdown in Bitcoin's trend was confirmed on Sunday when the asset sharply fell under the trendline that was acting as a support zone at $52,000. For now, the first cryptocurrency is trading far below that point at approximately $47,700.

Bitcoin Daily Chart
Source: TradingView

According to the analyst, the next support area for Bitcoin is at $37,000, which was the lowest point in August. The asset still remains at risk of plunging down into that zone in the next two months.

Stockton also says that it is impossible to predict the exact point of the next crash but still believes that a breach of the $44,000 support zone might possibly launch the asset directly into the next $37,000 area.

Crypto companies follow Bitcoin

With the breakdown of the majority of digital assets on the market, crypto-related companies like MicroStrategy, Riot and others fell sharply, losing up to 15% of their value in terms of days.

If Bitcoin traders decide to push the currency further down, crypto mining and operating companies are more likely to follow their underlying assets which, at press time, trades at $47,773 with 0.3% daily growth after losing 6% of its value the day before.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.