A widely followed crypto analyst warns Bitcoin may suffer a deeper correction if BTC fails to hold one key level.
Analyst Dave the Wave tells his 154,700 followers on X that Bitcoin needs to hold around $88,000 or it faces a deeper correction, after suddenly dipping this week below the $90,000 level.
“BTC chance of another leg down if this level cannot hold.”
The analyst says Bitcoin may revisit the $70,000 support level, a more than 22% decline from its current value.
“Some recent price action though is currently opposing this outlook in the formation of an ascending triangle in the more immediate term. A follow-through with a breakout to the fib extension target remains a possibility, but I think it more likely we see a further move to the downside.
Here price is likely to meet macro support at around the $70,000 level as seen on the multi-year chart. In nominal terms, it seems a huge drop. In real logarithmic terms it would be around a 25% correction of the rise since 2023.”
Veteran trader Peter Brandt, who accurately called Bitcoin’s 2018 crash, is also warning that a severe correction may be imminent for BTC.
Bitcoin is trading at $89,890 at time of writing, up 1.6% on the day.