Bitcoin Price Prediction: Indicators Signal Potential End of Bull Run; Bitcoin Could Plunge to $51K (2024)

Anjali Belgaumkar

Anjali Belgaumkar
Author
Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
Aug 5, 2024 11:47 UTC
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Bitcoin Price Prediction: Indicators Signal Potential End of Bull Run; Bitcoin Could Plunge to $51K (7)

Bitcoin is currently navigating a crucial support area that could determine whether the asset holds its ground or slides into lower price levels. The market has seen Bitcoin enter oversold territory on several time frames, signaling potential price exhaustion.

Analysts are closely monitoring this final support zone as Bitcoin approaches a pivotal point. According to analyst Josh of Crypto World, if Bitcoin fails to maintain its position above the $56,000 level, particularly with a decisive four-day candle close below this threshold, it could confirm a bearish trend reversal on larger time frames. This would mark the end of the bull market that has lasted since early 2023.

The SuperTrend indicator, which has been a reliable guide throughout the market cycles, flipping between green (bullish) and red (bearish), is on the brink of turning red. This would suggest a shift from the current bull market to a bearish phase. The last time this indicator turned red was during the 2022 bear market, and its accuracy in marking long-term trends makes this potential shift especially noteworthy.

Bitcoin’s recent price action has also formed a series of lower highs, a classic bearish pattern. For the bull market to have any chance of continuation, Bitcoin needs to hold above $56,000 and bounce back swiftly. Failure to do so could lead to a broader downturn, with the possibility of Bitcoin forming a giant bull flag only if a strong recovery follows soon.

Bitcoin Price Levels:

In the short term, Bitcoin’s support between $56,000 and $57,000 is crucial. A break below $56,000, confirmed by a daily candle close, could lead to a swift drop to the next support zone between $51,000 and $53,000.However, at the time of writing, Bitcoin has dropped below $52,000.

On shorter time frames, such as the 12-hour chart, Bitcoin’s RSI has already entered oversold territory, suggesting that a relief bounce might be imminent. However, this does not guarantee a bullish reversal, as the overall trend remains bearish.

Also Read: Why is The Crypto Market Down Today? Key Reasons Behind the Bloodbath on Satoshi Street