{"id":30882,"date":"2023-10-12T13:52:41","date_gmt":"2023-10-12T17:52:41","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=30882"},"modified":"2023-10-12T13:52:41","modified_gmt":"2023-10-12T17:52:41","slug":"bitcoin-doom-signal-warns-of-50-crypto-collapse","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/12\/bitcoin-doom-signal-warns-of-50-crypto-collapse\/","title":{"rendered":"Bitcoin Doom Signal Warns Of 50% Crypto Collapse"},"content":{"rendered":"

Bitcoin price<\/a> lost support yesterday at around $27,000 and is now below a critical level that the last two times it was lost, resulted in a 50% or more decline.\u00a0<\/p>\n

Will this signal returning once again forecast sudden doom and cause crypto prices to rain down another 50% lower?<\/p>\n

Bitcoin Forecast Is Suddenly Cloudy<\/h2>\n

The last several weeks of resilience in Bitcoin price action have been seemingly erased this week, as price fell below support at $27,000.\u00a0<\/p>\n

While the rounded psychological number is important by itself, BTCUSD has now pushed below the bottom of the Ichimoku cloud on the weekly timeframe.\u00a0<\/p>\n

According to historical performance after falling out of the cloud, the top cryptocurrency by market cap continued to tumbled significantly lower to the tune of 50%.\u00a0<\/p>\n\n

Will Crypto Crash Another 50%?<\/h2>\n

The Ichimoku cloud acts as dynamic support and resistance, and expands and contracts with volatility. Losing this support level in the past has had dangerous consequences.\u00a0<\/p>\n

In March of 2020, falling out of the cloud on the same weekly timeframe resulted in a 50% flash crash over the next two weeks during the onset of COVID in the US.\u00a0<\/p>\n

Later in May 2022, the LUNA collapse caused Bitcoin to lose the weekly Ichimoku cloud. It took over 20 weeks later to reach a bottom and a full 55% lower.\u00a0<\/p>\n\n

$12,000 Or $42,000: BTCUSD Levels To Watch<\/h2>\n

Another 55% crash in BTCUSD would take the price per coin to around $12,000. More importantly, it would be disastrous for altcoins that remain down by 90% or more from all-time highs.\u00a0<\/p>\n

The major difference between now and the last two times the cloud was lost, and that\u2019s the Tenkan-sen and Kijun-sen in blue and maroon respectively (pictured below). Unlike the two past instances, these spans are crossed bullish whereas previously they were during a bearish crossover.\u00a0<\/p>\n

If for some reason Bitcoin manages to hold inside the bottom of the cloud, it could next target the top of the cloud at around $42,000 per coin. If it doesn\u2019t, \u201clook out below.\u201d<\/p>\n

Charts initially appeared in Issue #23 of CoinChartist VIP<\/a>. Subscribe for free<\/a> to learn more about the Ichimoku cloud and what might happen next in Bitcoin.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin price<\/a> lost support yesterday at around $27,000 and is now below a critical level that the last two times it was lost, resulted in a 50% or more decline.\u00a0<\/p>\n

Will this signal returning once again forecast sudden doom and cause crypto prices to rain down another 50% lower?<\/p>\n

Bitcoin Forecast Is Suddenly Cloudy<\/h2>\n

The last several weeks of resilience in Bitcoin price action have been seemingly erased this week, as price fell below support at $27,000.\u00a0<\/p>\n

While the rounded psychological number is important by itself, BTCUSD has now pushed below the bottom of the Ichimoku cloud on the weekly timeframe.\u00a0<\/p>\n

According to historical performance after falling out of the cloud, the top cryptocurrency by market cap continued to tumbled significantly lower to the tune of 50%.\u00a0<\/p>\n

Will Crypto Crash Another 50%?<\/h2>\n

The Ichimoku cloud acts as dynamic support and resistance, and expands and contracts with volatility. Losing this support level in the past has had dangerous consequences.\u00a0<\/p>\n

In March of 2020, falling out of the cloud on the same weekly timeframe resulted in a 50% flash crash over the next two weeks during the onset of COVID in the US.\u00a0<\/p>\n

Later in May 2022, the LUNA collapse caused Bitcoin to lose the weekly Ichimoku cloud. It took over 20 weeks later to reach a bottom and a full 55% lower.\u00a0<\/p>\n

$12,000 Or $42,000: BTCUSD Levels To Watch<\/h2>\n

Another 55% crash in BTCUSD would take the price per coin to around $12,000. More importantly, it would be disastrous for altcoins that remain down by 90% or more from all-time highs.\u00a0<\/p>\n

The major difference between now and the last two times the cloud was lost, and that\u2019s the Tenkan-sen and Kijun-sen in blue and maroon respectively (pictured below). Unlike the two past instances, these spans are crossed bullish whereas previously they were during a bearish crossover.\u00a0<\/p>\n

If for some reason Bitcoin manages to hold inside the bottom of the cloud, it could next target the top of the cloud at around $42,000 per coin. If it doesn\u2019t, \u201clook out below.\u201d<\/p>\n

Charts initially appeared in Issue #23 of CoinChartist VIP<\/a>. Subscribe for free<\/a> to learn more about the Ichimoku cloud and what might happen next in Bitcoin.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-30882","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=30882"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30882\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=30882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=30882"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=30882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}