When to Prepare for Bitcoins Next Big Drop A Guide

The total value of the global cryptocurrency market is currently at $2.36 trillion, having decreased by 2.6% over the last 24 hours. Despite these fluctuations, Bitcoin’s recovery attempts are causing concern among investors due to conflicting signals from technical indicators.

Alan Santana, a trading expert, has indicated on TradingView that Bitcoin may be on the verge of a significant downturn, known as an SD-Wave or an SSD-Wave. An SD-Wave typically results in a 20-30% price decline, while an SSD-Wave involves a more severe drop of up to 40-50%.

Chart analyses suggest a higher likelihood of an SSD-Wave, prompting caution among investors. The BTC/USD chart indicates a decrease in trading volume over the past four months, signaling weakening buying momentum that may lead to further declines. The bearish sentiment and declining volume could result in historical support levels failing, leading to more price drops.

The downward trendline on the chart suggests a continuation of the bearish trend, with the price struggling to break above it. Key levels and strategies for navigating the downturn include monitoring the March 2024 support range of around $57,500 and the projected level based on altcoin correlations around $40,000. Breaching these levels could signal a deeper downturn.

Additionally, the January 2024 support level around $35,000 is a critical historical support that could come into play if the market experiences an SSD-Wave. Bitcoin is currently trading at $59,780, reflecting a 4% decline on the daily chart and a 12% decline on the monthly chart. Analysts are advising investors to be prepared for a significant drop within the next few weeks, keeping a close eye on key support levels and market dynamics to mitigate potential losses.