Expert outlines phases of ‘biggest crash’ for Bitcoin and altcoins as ‘trouble approaches’

A cryptocurrency trading expert has warned of a worrying outlook for the next price move of Bitcoin (BTC) and altcoins, even as investors anticipate potential new highs.

In a TradingView Article from 25 August Alan Santana described a grim scenario that will play out in the coming weeks, backed by detailed analysis that suggests the market is on the verge of what could be the worst crash of 2024.

According to Santana, the cryptocurrency market is about to reach the peak of a correction that has been building up throughout the year. He ominously stated that “trouble is coming to the market,” suggesting that Bitcoin capitulation is inevitable and will have a cascading effect on the entire crypto market.

He stressed that money is rapidly being withdrawn from altcoins, many of which have proven resilient despite Bitcoin's volatility.

“There are problems looming in the market. Many altcoins looked good and remained strong even when Bitcoin went up or down, but now everything is starting to slow down. This is the most telling signal of all,” the expert noted.

Important levels to watch

The analysis revealed that the market is bearish and Bitcoin is struggling to break through, with the total market cap already declining. Santana highlighted certain support zones that he expects to be tested in the coming weeks.

The first key support zone is around $1.65 trillion, a critical area that could determine the market's near-term fate. If this support fails, the market could crash to the next key support zone at around $1.2 trillion.

Phases of the upcoming market correction

At the same time, Santana laid out a vivid six-day scenario that he believes will characterize the coming market turmoil. He predicted that the market will initially be eerily quiet, with little activity, which would create a false sense of security.

When the crash begins, most market participants will continue to deny reality and cling to the hope of a bull market or new all-time highs for Bitcoin. However, billions of dollars will be instantly liquidated during this phase.

Then panic will set in as prices crash, and fear will grip the market as traders sell their assets even as the Bitcoin price falls. When the Bitcoin price hits a new low, the market will be dominated by uncertainty and speculation about how far it will fall, with some fearing a drop to $10,000.

After the initial shock wears off, the market will slowly recover. However, Santana warned that many will lose hope and sell at the bottom, only to miss the eventual recovery.

Eventually, a strong recovery will occur and Bitcoin is expected to grow in the long term, but the damage will already have been done and many investors will be hit hard by the volatility.

Furthermore, Santana predicted that this whole sequence could play out over one to three weeks, making it one of the most dramatic events in cryptocurrency history. He also posed a thought-provoking question to his audience: What will trigger this crash and what headlines will dominate the news?

Impact on Altcoins

Santana turned his attention to altcoins and outlined their likely reactions to the impending crash. He believes that some altcoins have already bottomed out. While they will experience a dip during the crash, it will be relatively small and followed by a quick recovery.

However, the biggest and most popular altcoins are facing a tough time. They are still trading at high levels, have to go through a painful correction and take longer to recover.

Meanwhile, Bitcoin is trying to maintain its gains above the $64,000 mark. At press time, BTC was trading at $64,128 and has gained 7% over the past seven days.

Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.