Bitcoin is now inching towards $70,000, but there is enough to worry about around $64,000. Crypto analyst Tara expressed concern that Bitcoin’s fifth wave may not be complete, with a prediction that further downside could still be ahead.
In a recent post on X, the analyst noted that the current move could either be the start or the final stretch of a fifth wave decline, and there’s still a possibility of the Bitcoin price falling to as low as $52,000.
Double Bottom Support At $59,900 And $60,500
Technical analysis done by crypto analyst Tara shows that Bitcoin has built a major support around the $59,900 to $60,500 range. This area is based on prior swing lows and a visible double bottom formation on the 4-hour candlestick price chart. It also coincides with deeper Fibonacci retracement levels projected from above $70,000.
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According to the analyst, Bitcoin could see a strong reaction if the price were to fall to that region. A bounce from this support could drive the Bitcoin price back to $64,400, which would then be tested as resistance instead of support.
However, such a rebound may only be temporary. If the macro fifth wave structure continues to play out, the market could still be setting up for one final push lower after that retest. According to Tara’s wave interpretation, this final push lower could extend to as low as $52,000.
This level is not yet fixed and will be remeasured as price action develops, but it represents a possible completion zone for the broader fifth wave. It is important to note that Bitcoin actually managed to hold above $60,000 throughout February, so therefore, the outlook to $52,000 is a worst-case scenario.
Interestingly, the Relative Strength Index indicator on the 4-hour timeframe is trending lower and approaching oversold territory. Tara advised traders to watch for bullish divergence on the RSI during the next drop. A bullish divergence on the RSI could be the first sign of the end of the corrective structure.
Bitcoin Might Register Higher Support At $64,000
Over the past few weeks, the $64,000 region has stood out as a decisive pivot for Bitcoin, repeatedly flipping between support and resistance depending on the direction of price. In a separate update, Tara highlighted that Bitcoin recently backtested the macro 0.5 Fibonacci level at $64,400 as resistance before attempting to push higher.
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Reclaiming $64,000 would be an important step toward reversing the current bearish macro trend. At the time of writing, Bitcoin is trading around $68,220, up 4% over the past 24 hours. Even so, there is still a risk of a pullback.
A drop back below $64,000 would weaken the short-term recovery and could expose the prior swing low at $60,500. On the flip side, bullish momentum would be confirmed if Bitcoin breaks above $70,000.
Featured image from Pngtree, chart from Tradingview.com
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