BTC price again failed to break above $43,000 and with that, it fell back below $40,000. In the last seven days, the cryptocurrency has already accumulated a drop of almost 10%, but the scenario could worsen in the following days.
According to anonymous trader DonAlt, the price of BTC (BTC) is starting to follow a market pattern similar to what happened in November 2021. With that, BTC could start a reversal and fall another 33%.
Sellers in control
DonAlt claimed that the bears (sellers) have taken control of BTC. This was because the bulls (buyers) acted strong but failed to drive BTC to new highs.
Even with the large purchases made by MicroStrategy and the Luna Foundation (LFG), the buying force has run out. In this way, the price fell again sharply and investors began to migrate in price.
“I think we have to assume that this is a bearish move and it will happen because we have had a lot of good news. We had a lot of altcoins, which is really interesting because this seems to be the case all the time. With these breakouts, people get excited and start buying altcoins instead of BTC and Ether (ETH).
For DonAlt, BTC’s rejection of breaking $45,000 is a big red flag for buyers. According to the analyst, this rejection is reminiscent of the BTC market structure in November. That is, a broad downward movement that is now continuing.
“We teamed up to get to $70,000, but there was a pullback. The $60,000 was not maintained and this was a downtrend. It was clearly a downfall, and it’s the same setup now. Obviously at the end of the term given it’s daily rather than weekly, but it’s still the same setup.
In that sense, the rejection should make BTC pull back again and drop by as much as 23% from its current value. As a result, the cryptocurrency could drop to the next support level, which according to DonAlt is the $33,000 zone.