Bitcoin Price Downside May Last 2 Months, Analysts Warn

Analysts predict potential further declines before a bullish breakout for Bitcoin.

Bitcoin may face two more months of downward pressure before experiencing a potential breakout, according to market analysts.

Historical Patterns Indicate Prolonged Downtrend

Based on historical price movements, Bitcoin's current downturn might extend for nearly two more months, says analyst Rekt Capital. In an August 3rd X post, Rekt Capital noted, “Bitcoin has returned to the Range Low area, with scope still for additional downside deviation in the near future. And currently, at ~110 days after the Halving, Bitcoin is slowly getting closer to its historical breakout point of 150-160 days after the Halving.”

Market Impact from Japan's Interest Rate Hike

On August 5th, Bitcoin briefly dipped below $50,000 following the Bank of Japan’s decision to raise its interest rate from 0% to 0.25%. This decision had a ripple effect on the US stock market and Bitcoin prices, as traders who borrowed Japanese yen at low-interest rates to buy US assets saw the increased rates affecting their positions. The crypto market experienced a significant loss of $510 billion in total market capitalization, marking the biggest three-day sell-off in over a year.

Emerging Bullish Patterns

Despite the current bearish trend, some analysts see potential for a bullish breakout. Analyst Satoshi Flipper highlighted a bullish chart pattern forming over seven months, stating in an August 4th X post, “The most epic bull flag in $BTC history has been forming for 7 months now, imagine being upset about this.” Similarly, crypto analyst Elja noted in an August 4th post, “BTC giant bull flag. The Bitcoin breakout pump will be legendary.”

Short-term Predictions

However, in the shorter term, Bitcoin’s downtrend might extend to the $42,000 mark, according to Alex Kuptsikevich, senior market analyst at FXPro. This indicates that while there is optimism for a long-term bullish trend, short-term challenges and further declines are still a possibility.

Conclusion

Bitcoin investors should brace for potential further declines in the coming months but can remain hopeful for a significant breakout as bullish patterns emerge. As the market continues to react to global economic changes, the cryptocurrency’s future remains dynamic and uncertain.

photo source / Blockonome