Skip to content

Bitcoin analyst eyes $40,000: ‘Prepare for the crash’

Bitcoin analyst eyes $40,000: 'Prepare for the crash'

Bitcoin’s (BTC) sentiment appears to have turned bearish as analysts eye sub-$50,000 price targets, preparing for a crash. The leading cryptocurrency shows weakness at resistance, potentially making another lower high – continuing in a downtrend.

Since reaching $73,800 and making a new all-time high (ATH) in March 2024, Bitcoin has clearly displayed a downtrend. In this context, Alan Santana, a reputable analyst, warned his followers to “prepare for a crash” down to $40,000.

“Lower highs is a bearish signal. Bitcoin has also been printing lower lows. A lower high leads to a lower low in the bigger structure. This means that Bitcoin dropping now, as it is expected, would send prices below 49K. The next fib. level below 49,000 sits around 40,000 – 43,000. That’s the main target for this drop but it can go lower. Prepare for the crash.”

– Alan Santana

According to Santana, Bitcoin could have made another lower high in this structure, getting ready for a flash crash.

Bitcoin (BTC) daily price chart. Source: TradingView / Alan Santana

Analysts weigh in on Bitcoin’s September Effect crash

Historically, Bitcoin has been a victim of the “September Effect,” having monthly average losses in all “Septembers” since 2013. The bearish sentiment is true among prominent analysts who have recently doubled down on previous analysis warning of a BTC crash incoming for this month.

Namely, The Crypto Cat and Digital Nomad Woman also shared a similar forecast on X – highlighting the lower highs. Meanwhile, Ali Martinez commented on the growing open interest dominated by long positions, warning of a long squeeze.

Indeed, Alan Santana had made a previous analysis warning of the same peril, as Finbold reported last week. Moreover, Credible Crypto, a known long-term bull trader, shared a similar insight of a dominantly bearish short-term chart. 

Dormant Bitcoin whales, which have been holding since “Satoshi Nakamoto’s time,” have just moved nearly $16 million worth of BTC, making waves, as we published earlier this morning. Santana mentioned this event in one of his recent updates on the aforementioned anylisis.

“Many ancient accounts are waking up, several today, all more than 15 years dormant; and this is always a bearish signal. This signal is stronger than “Michael Saylor bought Bitcoin,” to signal that a drop is coming… Watch out.”

– Alan Santana

As things develop, traders should remain cautious and understand the inherent volatility present in the cryptocurrency market. Nevertheless, contrarian traders could see the apparent consensus on an incoming crash as an opportunity to accumulate.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.