Bitcoin‘s value is currently hovering at $65,800, raising concerns about a potential downward trend. Recent movements in the market, including the U.S. transferring $2 billion worth of BTC and the upcoming Federal Reserve meeting, have contributed to the cryptocurrency’s instability. Geopolitical tensions, such as the expansion of conflict to Lebanon, also add to the negative sentiment.
How Low Will Bitcoin Drop?
Bitcoin has struggled to maintain a position above $70,000 for several months, signaling possible further declines. Despite optimistic remarks from figures like Trump, the current chart analysis suggests substantial weakness. Various factors have led to the noticeable drop from its resistance level.
Cryptocurrency analyst Skew predicts a deeper reduction, possibly down to $64,000. Recent sell-offs saw $800 million worth of open positions either liquidated or closed, reflecting investor fear. Skew links the selling pressure to the shift of 10% of GBTC to the Mini Trust, which has adversely affected ETF channels and spot market buyers.
Will Cryptocurrencies Drop?
DecenTrader’s latest market analysis indicates that Bitcoin could fall to $63,600, potentially triggering a severe downturn for altcoins. These altcoins, already missing out on earlier gains, may face a significant selling wave, resulting in deeper price dips.
“There are some 10x liquidations below $63,600 for longs. Below this level, liquidations will significantly intensify,” DecenTrader noted, highlighting the precarious situation.
Jelle, another analyst, mentioned the importance of crossing the $72,000 mark to curb the downward pressure. Achieving this level could trigger short liquidations and give bears a tough time in pulling the price back down.
Investor Insights
– Monitor Bitcoin’s price levels closely, especially around $64,000 and $72,000.
– Prepare for potential losses in altcoins if Bitcoin falls below $63,600.
– Consider the implications of ETF channel outflows on the spot market.
– Stay informed about geopolitical risks affecting market sentiment.
In a recent blog post by CryptoQuant Quicktake, analyst Amr Taha pointed out an accumulation trend among short-term investors, suggesting that those anticipating deep dips might be let down.