Originally published on: August 05, 2024
The recent sell-off in Bitcoin has experts warning of even further downside potential, with predictions of the cryptocurrency dropping below the crucial $45,000 level.
In the past 24 hours, Bitcoin’s price tanked by over 12.8%, hitting a five-month low of $52,369, as reported by Cointelegraph. The last time Bitcoin traded at this level was back in February 2024, raising concerns about its future trajectory.
Looking ahead, senior market analyst at FXPro, Alex Kuptsikevich, believes Bitcoin could plummet even further, possibly retesting the $42,000 mark. He emphasized the significance of psychological levels like $42,000 in influencing market sentiment, which could sway Bitcoin’s short-term momentum.
Despite the bearish outlook, there is still hope for a potential recovery. However, in order to avoid further decline, Bitcoin must reclaim the $51,000 threshold. The Moon, a respected pseudonymous crypto analyst, echoed this sentiment in a recent post, suggesting that Bitcoin’s recent drop aligns with historical bull cycle retracements.
At the $50,000 mark, Bitcoin has a strong support level that could prevent a free fall. Coinglass data reveals that a massive $400 million in leveraged short positions would be liquidated if Bitcoin dips below $50,000, escalating to over $520 million if it falls below $49,400.
While the future remains uncertain for Bitcoin’s price, investors are advised to stay vigilant and monitor key levels to gauge potential market movements. The cryptocurrency landscape is as unpredictable as ever, with every twist and turn offering new opportunities for traders to capitalize on.