Analysts Warned That Downside Pressure Could Push BTC Below $44K

The analysts warned that downside pressure could push Bitcoin’s price below $44,000 because the double top formation already preceded bitcoin’s drop below $48,000 as we reproted in our previous Bitcoin latest news.

It looks like the year-end rally had most traders hoping for, will have to wait until 2022 as BTC bears gained the upper hand on December 28 and crushed the price of BTC below the support at $48,000. The data from Tradingview shows that an early morning wave of selling broke through BTC support at $50,000 came in with a second wave in the early afternoon which dropped the cryptocurrency to a low of $47,318 before the bulls managed to stem the outflow but analysts warned that downside pressure could still push it lower.

The insight into the technical reasons for the correction of the BTC price was offered by the options trader and pseudonymous Twitter user “John Wick” who posted the charts outlining a bearish “fake out” as the price started reversing.  Wick explained:

“We formed a double top that was clearly defined by bearish RSI divergence. Notice how price action trends up, while RSI was trending down. We also had a bearish Alpha Thrust & Squeeze fakeout.”

Bitcoin’s struggle at the 21-week exponential moving average as outlined in the charts from market analyst and Twitter user “Rekt Capital” with the charts showing the BTC difficulty had broken the above this technical indicator. According to Rekt Capital, the price action for BTC Is quite similar to a scenario that occurred in May where BTC experienced a multi-week consolidation between the two bull market EMAs and the price was able to revisit the $44,000 level:

“Historically, BTC has performed downside wicks into the orange area during this red retest so there’s scope for another revisit of orange.”

The suggestions as to what traders have to watch out for in the upcoming days and weeks were offered by the analyst “Don Alt” who posted charts showing that BTC is in a pretty clean downtrend for now. Don Alt indicated that there’s not much to do with BTC’s trading in a range at these levels but he is waiting for a clear breakout above the first red resistance zone on the charts which are located near $52,000:

“I start getting hopeful above $52,000, above $60,000 the raging bull market is back on. Until either of those happens I’m gonna look for deep wicks and focus on other more exciting things.”