A trader known for several accurate crypto market calls says that Bitcoin (BTC) may not be done correcting after suddenly dropping below $58,000.
Pseudonymous analyst Dave the Wave tells his 146,700 followers on the social media platform X that he is closely watching to see if Bitcoin will hold as support at a key Fibonacci retracement level.
Based on historic precedence, the analyst had accurately predicted a possible move down to around $58,000.
“I don’t really see too much drama in BTC at the moment, still in the range, still some wiggle room down to the .382 fib, the standard of previous consolidations. Perhaps much of the nervousness comes from the fact that price moves in multiple thousands now that it is so high whereas in terms of percentages it is BTC normal.”
However, the analyst warns a break below the .382 Fibonacci level, which is around $58,000, could send Bitcoin plummeting to around $48,000.
“$58,000 is the 0.382 real retracement of the recent move as commensurate with the previous. Effectively hit now. Let’s see if it holds. If not, could be in for a larger BTC correction down to $48,000 odd.”
He also warns that altcoins will likely plummet if Bitcoin continues to decline.
“If BTC moves down further, most likely alts will too. I’ve some bids set.”
Bitcoin is trading for $57,017 at time of writing, down 5.9% at time of writing.
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