Crypto analyst DonAlt has outlined a scenario where the Bitcoin price could drop to as low as the mid-$40,000. He further suggests that this price breakdown might be necessary for the continuation of BTC’s bull run. In an update to his Bitcoin analysis, DonAlt noted that Bitcoin had dropped back to around the $60,000 price range and could eventually break that support if it continues to be tested. From the accompanying chart he shared, the crypto analyst hinted that a price breakout below the $60,000 range would see Bitcoin drop to $52,000 or even further down to $47,000. He added that this might be something even the bulls want, so there could be a washout below $60,000, which would shake off weak hands. DonAlt also seems to support a price breakout below the support area, as he shared his belief that there is currently complacency in the market.
Possible Bearish Trends
Denis Baca, Head of Product at Zivoe Finance, also recently suggested that BTC could drop below $60,000 before it makes any parabolic move. This was a huge possibility, especially since Baca noted that the flagship crypto historically retests the support level of the 20-week SMA (small moving average) in May. He claimed this could cause Bitcoin to drop to $56,000. Bitcoin bulls look to be succumbing to the pressure from the bears. Crypto analyst Ali Martinez revealed in an X post that there has been a “noticeable dip in Bitcoin whale activity” since March 14. This suggests the current market downtrend could be diminishing their confidence, as these whales are always known to accumulate more during every price dip. Martinez added that a “surge in whale transactions could be the spark needed to boost” BTC’S price. Meanwhile, CryptoQuant’s Head of Research, Julio Moreno, recently noted that Bitcoin’s price has remained tepid due to the slowdown in demand. He alluded to the Spot Bitcoin ETFs, which have seen their demand decline this month.
Current Market Situation
At the time of writing, Bitcoin is trading at around $62,300, down over 2% in the last 24 hours, according to data from CoinMarketCap. This indicates that the bearish sentiment surrounding Bitcoin may have some validity. With predictions of a potential drop below $60,000 coming from multiple analysts, it is essential for investors to closely monitor the market and be prepared for any downturns. The recent decrease in Bitcoin whale activity and the slowdown in demand for Spot Bitcoin ETFs are factors contributing to the current lackluster performance of the cryptocurrency.
The bearish case for Bitcoin is gaining traction as analysts predict a possible drop below $60,000 in the near future. While the cryptocurrency market is inherently volatile, it is crucial for investors to stay informed and remain vigilant in times of uncertainty. The coming days will be crucial in determining whether Bitcoin will experience a significant price drop or manage to reclaim support levels. As always, conducting thorough research and exercising caution when investing in cryptocurrencies is strongly advised.