Potential Scenario: Bitcoin Price Could Drop to Mid-$40,000, Analyst Suggests
The Bitcoin price could be in for a significant drop, according to crypto analyst DonAlt. In his latest analysis, DonAlt outlined a scenario where Bitcoin could plummet to as low as the mid-$40,000 range. This potential price breakdown, he suggests, might be necessary for the continuation of BTC’s bull run.
DonAlt pointed out that Bitcoin has already 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 he shared, the crypto analyst hinted that a price breakout below $60,000 could see Bitcoin drop to $52,000 or even further down to $47,000.
Interestingly, DonAlt believes that this price drop might be something even the bulls want, as it could shake off weak hands and eliminate the complacency currently present in the market. He emphasized the need for Bitcoin to reclaim $68,000 or drop below $60,000 and reclaim that support level to dispel this complacency.
Adding to the bearish sentiment, Denis Baca, Head of Product at Zivoe Finance, also suggested that BTC could drop below $60,000 before making any significant upward move. Baca highlighted the historical tendency for Bitcoin to retest the support level of the 20-week SMA in May, potentially causing a drop to $56,000.
The pressure from the bears seems to be overwhelming the Bitcoin bulls, as noted by crypto analyst Ali Martinez. Martinez pointed out a noticeable dip in Bitcoin whale activity since March 14, indicating a decrease in confidence among these large holders. However, a surge in whale transactions could potentially boost BTC’s price.
Additionally, CryptoQuant’s Head of Research, Julio Moreno, highlighted the tepid price action of Bitcoin due to a slowdown in demand, particularly in Spot Bitcoin ETFs. Moreno emphasized the need for demand growth for Bitcoin to see another rally.
As of the latest data from CoinMarketCap, Bitcoin is trading at around $62,300, down over 2% in the last 24 hours. The cryptocurrency market remains volatile, with the potential for further price fluctuations in the near future.
