Is Bitcoin (BTC) Due for a Prolonged Price Pullback? Expert Highlights Past Patterns Suggesting a Huge Correction Might Be Imminent

The recent bearish performance of Bitcoin may extend significantly in the upcoming days. Crypto expert and Market Sniper trading bot creator Jesse Olsen has highlighted past patterns suggesting that BTC might be on the verge of a huge price pullback.

Bitcoin price dropped sharply on Monday, continuing a trend that began last week after the digital asset reached a new all-time high. The BTC price fell by as much as 11% from the recent peak, sparking speculation in the community about a potential extended price correction to previous support levels.

However, despite the recent bearish performance, one crypto expert believes that the downturn may extend even further in the coming days. Jesse Olsen, the creator of the crypto trading bot Market Sniper trading bot, highlighted past patterns that suggest BTC could be set for a large price pullback.

According to Olsen, BTC may be due for a correction of up to 30% in the coming days. Drawing parallels to past cycle trends, Olsen highlights that these kinds of corrections typically occur during significant uptrends. Specifically, Olsen points out a notable pullback as Bitcoin experiences a bearish crossover on the Moving Average Convergence Divergence (MACD) indicator.

This is because the last three times the MACD indicator had a bearish crossover on the 3-day chart at high levels, Bitcoin price experienced at least a 30% correction. As price continues to drop, the analyst has highlighted four key levels to watch, including $92,000, $85,000, $80,000, and $70,000, should BTC downtrend extend.

If BTC were to hit 4 out of 4 targets, this would imply that the crypto asset could drop down to the $70,000 range. Notably, the anticipated correction may serve as a positive reset for the market as Bitcoin's long-term outlook continues to be bullish.

Furthermore, it could present an opportunity for new investors to purchase BTC before it resumes its upside momentum toward previous resistance levels. Olsen’s prediction also aligns with that of senior analyst at the CoinDesk news outlet James Van Straten, who forecasts a similar level of pullback in the upcoming days. The analyst highlights several key support levels in determining Bitcoin's next direction.

After examining the BTC's Entity-Adjusted URPD metric, Van Straten notes that the next key support for the digital asset lies at $90,000. With no support established at this point, the $75,000 threshold could be next in line once BTC loses the $90,000 critical support point. As such, the move from $90,000 to $75,000 would mark the anticipated 30% pullback completion.

BTC At A Critical Moment Despite the ongoing market volatility, BTC has formed the most critical trendline. According to market expert Titan Of Crypto, this trend is the most crucial for BTC as its next direction depends on a breakout from the line.

With the significance of the development, the expert notes that as long as it stays above this trend line, there is no need to worry. Even though the monthly candle does not appear bullish now, there is still one week left before it closes, suggesting a possible recovery.

Currently, Bitcoin price is trading at $93,977, down over 2% in the past 24 hours. Its daily trading volume is showing a rising optimistic sentiment among investors as it has gone up by nearly 6%.