Bitcoin Market Analysis: Analysts Warn of a Massive Plunge Ahead

Azeez Mustapha
3 June 2021 | Updated: 3 June 2021

After consolidating for over a week now, analysts predict that Bitcoin (BTC) is gearing up for another massive leg down. Chart patterns show the formation of a pennant pattern that could result in a significant price move.

Another report shows that a “death cross is looming,” another telltale sign of a massive bearish move. Some analysts have placed their target around the $18k level. A bearish move to this level does not seem outlandish given the recent market sentiment.

At press time, the Bitcoin fear and greed index is deep in the red and is at an ‘extreme fear’ level (24).

That said, the long-term prospect for Bitcoin remains intact and institutional players have asserted that they are in it for the long haul.

Meanwhile, the famous creator of the stock-to-flow model, Plan B, has evaluated previous corrections and noted that they have all been v-shaped. He argued that this could be a sign of accumulation by institutional players and could lead to the next leg up.

Macroeconomics analyst and Bitcoin HODLer, Madelon Vos, noted that a significant breakout is possible. Vos stated that:

“Combined with positive divergence on RSI and a symmetrical triangle having a possible breakout of $10.000… a very plausible scenario. We could end up around $48 or $25k the next couple of weeks.”

Key Bitcoin Levels to Watch — June 3

As predicted in our last analysis, Bitcoin has broken out of its range-bound momentum and wedge pattern and now heads towards the critical $40k resistance.

BTCUSD – Hourly Chart

While the benchmark cryptocurrency looks adequately poised to take the $40k level, bulls need to prevent a fall below the $38,500 support. A break below the $38.5 support could send BTC into consolidation or more corrections, thereby stalling the newly-found bullish momentum.

Meanwhile, our resistance levels are at $40,000, $40,500, and $41,000, and our key support levels are at $38,500, $37,500, and $37,000.

Total Market Capitalization: $1.78 trillion

Bitcoin Market Capitalization: $737.6 billion

Bitcoin Dominance: 41.4%

Market Rank: #1

 

You can purchase crypto coins here: Buy Coins

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.