Bitcoin Price Plunges as Analyst Warns of Possible $44K Dip

Bitcoin's price has been under renewed selling pressure after being rejected from resistance earlier this month. The cryptocurrency is currently testing structural support near $63,760, a level it reached in July. According to one chart analyst, if Bitcoin fails to hold the current support zone between $59,356 and $62,492, it could signal the next leg lower.

The analyst warns that if this bearish scenario unfolds, Bitcoin's price could continue declining toward $44,000 or even lower, with a possible target near $39,000 later this year. However, the same analyst also notes that Bitcoin's current price action is aligning reasonably well with a classic accumulation pattern first documented by Richard Wyckoff in the early 1900s.

The pattern typically unfolds in five phases: an initial downtrend, a long consolidation range, a sharp final flush below prior support, a reclaim of the zone on lighter volume, and finally a slow rally phase followed by a genuine breakout on strong volume. If this pattern continues to play out, Bitcoin might only need to dip modestly into the low to mid $50,000s before finding real buying interest.

Another key data point is that Bitcoin has already fallen 55% from its recent all-time high. Historically, the 200-week moving average has marked the general area where past bear market lows have formed, and Bitcoin's current price sits close to that level right now.