Bitcoin is about to form 3 consecutive red weekly candles, risk of falling below the $30,000 zone

Analyst Rekt Capital say If Bitcoin, the top crypto asset by market cap, fails to create support near $38,000, this will be its new resistance.

The strategist noted that BTC has only seen three consecutive red weekly candles once since 2020. However, this week could mark the second time this has happened if BTC keeps falling. The odds for the top crypto asset are not good, Rekt Capital also said.

Bitcoin is likely to dip below the $30,000 zone

Analyst nicknamed Cred, only two the script likely for bitcoin, with bullish option BTC finding support at $30,000.

There’s a difference between panic selling due to fear, uncertainty and doubt (FUD) and technical selling, says Cred.

“The first is the case where Bitcoin can hold the $30,000 mark. The market fell from $60,000 to $30,000 when China banned the ban, along with Elon Musk’s acceptance of bitcoin payments last year. In contrast, the recent decline, caused by a deliberate and programmatic sell-off, was less in the direction of liquidation. There is a clear microstructural difference between these trains.”

Cred anticipates that if the market can sustain the price above the $30,000 region going forward, Bitcoin may eventually bottom and recover.

When this situation occurs, buyers can enter the market in the $30,000 to $37,500 range and the average price should ideally be as close to the low end of the range as possible.

BTC price chart | Source: TradingView

The trader continues to take a more negative view of the situation for Bitcoin, which he calls the “potential for a market collapse.”

In the second scenario, Cred believes that Bitcoin is likely to return to the sub-$30,000 region and the market could fall 30-50% from current prices.

Cred stressed that it would take a combination of many general negative factors for Bitcoin to be pulled lower in this situation.

“The world would have to be in a pretty chaotic place with a lot of market surprises happening for this scenario to happen.”

BTC price chart | Source: TradingView

However, Cred also said it is still possible, albeit with a rather low probability. Therefore, traders need to be cautious with the upcoming moves in the market.

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