Crypto analyst DonAlt recently outlined a scenario where the Bitcoin price could potentially drop to as low as the mid-$40,000 range. He mentioned that this price breakdown might be necessary for the continuation of Bitcoin’s current bull run. DonAlt noted that Bitcoin had dropped back to around the $60,000 price range and could potentially break that support level if it continues to be tested. From the chart that he shared, he hinted that a price breakout below the $60,000 range could see Bitcoin drop to $52,000 or even further down to $47,000.
DonAlt also suggested that there might be a level of complacency in the market, where crypto investors are ignoring the risks associated with Bitcoin due to an extended period of price increases. He believes that this complacency will persist until proven otherwise. For a shift to occur, Bitcoin would need to either reclaim $68,000 or drop below $60,000 and then reclaim that support level again.
Denis Baca, the Head of Product at Zivoe Finance, also recently suggested that Bitcoin could drop below $60,000 before making any parabolic moves. He mentioned that historically, the flagship cryptocurrency tends to retest the support level of the 20-week SMA (small moving average) in May, which could potentially cause Bitcoin to drop to $56,000.
Bitcoin bulls seem to be facing pressure from the bears, as noted by crypto analyst Ali Martinez who revealed a noticeable dip in Bitcoin whale activity since March 14. This decrease in whale activity suggests a diminishing confidence in the current market downtrend. Martinez mentioned that a surge in whale transactions could potentially boost Bitcoin’s price. Additionally, CryptoQuant’s Head of Research, Julio Moreno, highlighted that Bitcoin’s price has remained tepid due to a slowdown in demand, particularly in Spot Bitcoin ETFs. Moreno emphasized the need for demand growth in order for Bitcoin to experience another rally.
As of the time of writing, Bitcoin is trading at around $62,300, down over 2% in the last 24 hours, according to data from CoinMarketCap. The current price trend is at $62,200, with fluctuations in the market dynamics. It is essential for investors to stay informed and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
The Bitcoin price analysis showcases various scenarios where the price could potentially drop to the mid-$40,000 range. With considerations from crypto analysts like DonAlt, Denis Baca, and market sentiments from Ali Martinez and Julio Moreno, it is evident that the market is facing a level of uncertainty and potential price corrections. Investors are advised to stay vigilant, conduct research, and make informed decisions to navigate the volatile nature of the cryptocurrency market effectively.
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