"Entering a Downtrend Pattern with Lower Highs" Bitcoin Expected to Plummet to $56,000 After Short-Term Rebound

▲ Bitcoin (BTC) Crash/ChatGPT generated image ©

Amidst the virtual asset market's excitement for a breakthrough to $80,000, chilling warnings from experts suggest that premature buying could become a victim of a massive downturn, thus requiring investors' special attention.

According to the cryptocurrency media outlet Bitcoinist on April 29 (local time), virtual asset analyst Sherlock Whale pointed out that while Bitcoin (BTC) could rise towards the $80,000 mark in the short term, it is more likely to be a trap that plunges late buyers into a deep swamp of losses rather than leading to a sustained bull run. He analyzed that the current market situation is easily mistaken for the start of a bull market, but in reality, a typical pattern of declining with lower highs could unfold.

The analyst explained that many traders are currently expecting new highs, but the chart structure shows a very similar trend to past resistance zones around $107,000 and $97,000, where it lost upward momentum due to strong selling pressure. In the past, buyers who were confident of an ascent and entered late in these zones were crushed by profit-taking by sellers and were helplessly trapped.

Sherlock Whale warned that such a 'trap' could occur again when Bitcoin approaches the key resistance line of $79,300, and presented two specific bearish scenarios. The first forecast is that if the weekly candle closes below $79,300, it should be considered a strong short-selling signal, leading to a sharp decline to $60,000.

The second scenario is if Bitcoin temporarily breaks through $79,300 and continues its rally to around $83,400, which aligns with the 0.618 Fibonacci retracement level. He views even this zone as a liquidity trap designed to entice buyers, ultimately predicting that a massive decline will begin, eventually plummeting to $60,000, which is estimated to be the bottom of the bear market.

Renowned market analyst Michaël van de Poppe also offered a pessimistic outlook consistent with this view. He warned that after Bitcoin stages a short-term rally to the next resistance level between $85,000 and $88,000 in May, its upward momentum could exhaust, leading to a severe crash that would send it tragically plummeting to the $56,000 mark, urging a cautious approach.

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