Bitcoin recently took a sharp 5% nosedive, landing at $60,000. This marks a significant downturn from its peak of around $75,000 in mid-March. As Bitcoin breaches a crucial technical support level, the crypto market braces for potential short-term setbacks.
Here’s all you need to know about what lies ahead.
Crypto analyst DonAlt predicts a bleak scenario, suggesting that Bitcoin could plummet to the mid-$40,000 range. This, he believes, is a necessary correction for Bitcoin’s ongoing bullish trend. DonAlt’s analysis is based on Bitcoin’s recent drop to $60,000 and the looming threat of breaking below this key support level.
DonAlt’s perspective? He sees the recent price dip as a cleansing process, weeding out easily panicked investors and preventing complacency among those who have grown accustomed to Bitcoin’s constant rise. DonAlt maintains his stance unless Bitcoin either bounces back above $68,000 or dips below $60,000 before climbing again.
Denis Baca, Head of Product at Zivoe Finance, echoes DonAlt’s forecast, anticipating a potential drop to $60,000 before any significant upward movements. Baca bases his prediction on historical patterns, particularly referencing the retesting of the 20-week SMA support level in May, which could drag Bitcoin down to $56,000.
Katie Stockton’s Warning
Founder of Fairlead Strategies, Katie Stockton, issues a word of caution, noting Bitcoin’s struggle to sustain levels above $61,100 to $62,200. This technical signal, Stockton warns, indicates further challenges ahead for Bitcoin.
Crypto expert Ali Martinez highlights a decline in Bitcoin whale activity since March 14, suggesting a loss of bullish momentum. This decrease in whale activity, Martinez suggests, reflects a lack of confidence among major investors, potentially affecting market sentiment. Martinez also speculates on the possibility of revived bullish activity with increased whale transactions.
Additionally, Head of Research at CryptoQuant, Julio Moreno, sheds light on a slowdown in demand for Bitcoin, particularly in Spot Bitcoin ETFs, which could hinder the cryptocurrency’s potential for another rally. Moreno emphasizes the necessity of increased demand for Bitcoin to witness significant price appreciation.
With market volatility on the rise and the lingering effects of Bitcoin’s halving, May presents challenges to its bullish trajectory.
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