Bitcoin In Red, Analyst Predicts A 40% Drop To $48,000 Before Recovery
June 26 2024 - 12:30PM
NEWSBTC
Bitcoin is roughly 20% from all-time highs, and risks are trending
lower, breaking from the current consolidation. After peaking in
mid-March, bulls are yet to build enough momentum and overcome the
roadblock at $72,000. Will Bitcoin Fall To $50,000 Or Worse?
Analyst Thinks So While there were temporary gains in early June,
the retracement in the last few trading days has seen BTC recoil,
falling below $60,000 this week. Even though some traders are
hopeful, one analyst took to X, saying holders should brace for
more losses in the coming days. Citing the spending
actions of long-term holders (LTHs) in previous cycles, the analyst
said there is a high probability that their habits could see BTC
drop by 40% from all-time highs. Related Reading: Bitcoin Rejection
At $62,498 Signals Bearish Dominance, Here Are Possible Outcomes
Interestingly, data shows LTHs began selling at around $45,000.
This level can act as a support region, anchoring a leg up that may
see BTC finally break $72,000 and all-time highs. The analyst added
that the current formation mirrored the discouraging decline in
2019. Then, BTC fell sharply before pushing higher, triggering a
bull run. As of late June, Bitcoin has been roughly 20%
of spot rates. If the analyst is correct, the coin could drop below
May 2024 lows and as low as $48,000, breaking the round and
psychological number at $50,000. Looking at the structure of the
Bitcoin candlestick formation in the daily chart, the zone between
$56,500 and $60,000 is supported. If sellers of June 24 flow back,
pushing prices lower, there is a high probability of BTC slipping
even lower. Technically, the drop will be a bearish breakout
formation, a move that could catalyze even more losses. Traders Are
Bullish Despite Increased Outflows From Spot BTC ETFs Despite the
bearish assessment, there are contrasting activities, especially
when looking at the behavior of traders on Binance. One analyst
shared data revealing that over 72% of all accounts with open BTC
positions are long. This resilience in the face of recent drops and
the willingness to hold on despite dips is a massive boost of
sentiment. It comes when the BTC market expects payment from Mt.
Gox to heap more pressure on prices. After roughly ten years, hack
victims will be receiving their compensation. Related Reading: Can
Terra Classic Rise From The Ashes? Analyst Foresees 1,500% Price
Increase Persistent outflows from spot Bitcoin exchange-traded
funds (ETFs) worsen the situation. Lookonchain data on June 25
shows that all spot BTC ETF issuers in the United States decreased
by 2,145 BTC. Of this, Fidelity decreased by 612 BTC. Feature image
from Canva, chart from TradingView
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