DonAlt, a prominent cryptocurrency expert, has recently forecasted a downturn for Bitcoin (BTC). Speaking on the Technical Roundup YouTube channel, the analyst voiced concerns about Bitcoin’s ability to maintain a crucial psychological support level, warning that it could potentially slip below $60,000.
What Are the Worst-Case Scenarios?
According to DonAlt, a breakdown in Bitcoin’s price within the $60,000 to $73,800 range might trigger an extended downtrend. He suggested that such a decline could lead to at least 120 days of price stagnation, complicating Bitcoin’s chances of regaining its bullish momentum.
In his worst-case scenario, DonAlt predicted that Bitcoin could plummet by up to 35% from its current levels, potentially reaching the mid-$40,000 range, between $44,000 and $40,000. He emphasized that this represents the maximum drop he anticipates and does not expect Bitcoin to fall further below this bracket.
What If the Decline is Less Severe?
Alongside his most severe projections, DonAlt offered a less drastic scenario where Bitcoin might find support around $52,000. This would still mark a significant decline from current levels but would prevent the more extreme drop suggested in his worst-case scenario, leading to a period of sideways trading.
Key Takeaways for Investors
- A break below $60,000 may result in a prolonged downtrend.
- Bitcoin could potentially fall to the mid-$40,000 range.
- A less severe decline might see support around $52,000.
- A weekly close above $63,000 could indicate a positive trend, albeit unlikely.
Despite a generally bearish outlook, DonAlt acknowledged a slim 10% chance of a bullish scenario where Bitcoin closes above $63,000 weekly, signaling a positive trend. However, he advised caution, urging investors not to be overly optimistic at this stage.
Currently, BTC is trading around $61,500, marking a 1.4% increase in the past 24 hours. However, data reveals that Bitcoin has experienced a significant 4.80% drop over the last week.