September 25, 2023

Bitcoin (BTC) Might Plunge Below $40K – Weekly Forecast

  • Bitcoin price breached the support level at $53,000 and currently explores the foothold at $48,000 – $50,000.
  • BTC should climb above $57,854 to turn bullish and cancel the possible plunge to $40,000.
  • On-chain metrics displayed mixed emotions, showing indecisiveness in the cryptocurrency markets.

Bitcoin has its price wavering around a critical barrier amid indecisiveness by bears and bulls. Moreover, the bear-bull tag of war indicates indecision by market players. That often happens before the market sees a volatile move. For now, near-term investors need to be alert about the upcoming price actions.

BTC at Crossroads

BTC has plummeted under the psychological level of $50,000 five times within the past six days. Though the initial four times had BTC recovering beyond the area, the 9 December fall formed a daily close under the zone.

The upcoming price actions remain vital as they would determine direction bias. Bitcoin has chances to consolidate before exploding. Though it is challenging to predict BTC moves, we presume a bullish action. That way, BTC required a daily candle close past $57,845 to show bullish control. With that, BTC will form a higher high, then a higher low, confirming an upward trend.

Even if Bitcoin flips the $57,845 value area, it will encounter a thick consolidation level up to $61K. Beyond this level, BTC will attack the $65,509 obstacle before exploring the ATH at $69,000. However, the large coin requires a higher high past $57,845 to reverse its downtrends.

The DAA supports this narrative, showing active addresses are beyond the monthly average of 944,000, currently at the 1.11 million mark. That shows market players continue interacting with BTC blockchain despite the latest crack, confirming optimism in Bitcoin’s future performance.

The 365-day MVRV model supports a possible uptrend as it stays at the 1% mark. Remember, it shows the average loss/profit by BTC buyers within the past 12 months. This indicator can dip in the negative region, but the long-term holder may start adding, kick-starting an uptrend.

For now, market players should be cautious and observe BTC price reactions near the $50,000 psychological zone. Consolidation and a bounce to $57,845 will show bulls’ stepping ups. However, investors should wait for such confirmations. Nevertheless, BTC maintaining continuous drop might mean a $40,000 revisit.

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