Bitcoin price could drop further to between $54.000 and $57.000

The Bitcoin price is currently moving around $63.000 and, according to a technical analysis, appears not to be finished with the ongoing correction phase. Analyst Darkfost shares an analysis based on the daily timeframe and expects the price to make one final drop in the coming weeks before the correction nears its end.

Bitcoin is available at OKX and Bybit.

In short:

• Bitcoin is still in a correction phase and is trading below the key moving averages.
• The RSI shows weak momentum, but a bullish divergence is beginning to form on both the daily and weekly charts.
• Based on Elliott Wave analysis, the price is pointing towards a target zone of $54.000 to $57.000 before the correction is completed.

Bitcoin remains under pressure from moving averages

Darkfost notes that Bitcoin has been trading within a clearly defined correction for quite some time. The price is below both the 21-day and 50-day EMA, which are currently acting as resistance levels. In early November, a bearish crossover with the 200-day EMA confirmed the downward trend. That 200 EMA now stands much higher at $72.930, and a first positive signal would be if the 21 EMA crosses back above the 200 EMA.

The RSI currently offers little reason for optimism. Every attempt to sustainably rise above the 50 level has failed so far. Nevertheless, according to Darkfost, a bullish divergence is beginning to emerge, both on the daily and weekly timeframes. This could bring momentum back over the longer term, although it is still too early to draw firm conclusions.

Elliott Wave points to possible further decline

Based on Elliott Wave theory, Bitcoin is in the final phase of a corrective pattern, with wave C not yet fully played out. A brief bounce towards $68.000 is possible, but then one additional downward move would still be needed to complete the pattern. According to the analysis, wave C points to a price target between $54.000 and $57.000, depending on how deep the capitulation goes. If the price first rises to $68.000 or higher, the end point of wave C could be slightly higher.

The analyst expects a few more weeks of work before the pattern is fully completed, including probably one final minor downward move. At the same time, he states that the correction is nearing its end as divergences begin to form and the RSI goes through a reset phase. Whether Bitcoin holders become active as the bottom approaches remains to be seen. For now, patience is the key word.