Bitcoin
Crypto Analyst Predicts Breakout to $42,000
DonAlt Crypto Analyst described a scenario where the price of Bitcoin could fall to $40,000. He further suggests that this price drop may be necessary for the continuation of the BTC bull run.
How Bitcoin Could Fall to $47,000
On a to update In his Bitcoin analysis, DonAlt noted that Bitcoin has fallen to around the $60,000 price range and could eventually break this support if it continues to be tested. In the chart he shared, the crypto analyst suggested that a price break below $60,000 range would see Bitcoin fall to $52,000 or even further to $47,000.
Source: X
Meanwhile, he added that this could be something even the bulls want, so there could be a dip below $60,000, which would ward off weak hands. DonAlt also appears to support a price break below the support area as he shared his belief that there is currently complacency in the market.
This is when crypto investors ignore the risks associated with Bitcoin, having seen price increases over a long period. DonAlt said he would continue to maintain this belief of complacency until proven otherwise. For this to happen, he noted that Bitcoin would need recover $68,000 or fall below $60,000 and reclaim that support level again.
Denis Baca, head of product at Zivoe Finance, also recently suggested that BTC could fall below $60,000 before making any parabolic moves. This was a strong possibility, especially since Baca noted that the top cryptocurrency has historically retested the 20-week SMA (small moving average) support level in May. He claimed this could cause Bitcoin to fall to $56,000.
BTC bulls are being dominated by bears
Bitcoin bulls appear to be succumbing to bear pressure. Crypto Analyst Ali Martinez revealed in a X post that there was a “noticeable drop Bitcoin Whale Activity”since March 14th. This suggests that the market’s current downtrend may be dampening their confidence as these whales are always known for accumulating more during each price drop. Martinez added that “an increase in whale transactions could be the spark needed to increase” the price of BTC.
About that, CriptoQuant’s Head of research Julio Moreno recently noted that the price of Bitcoin has remained tepid due to slowing demand. He alluded to Spot Bitcoin ETFswho saw their decline in demand this month. As Martinez mentioned, Moreno stated that there needs to be “demand growth” for Bitcoin to experience another rally.
At the time of writing, Bitcoin is trading around $62,300, down more than 2% in the last 24 hours, according to data from CoinMarketCap.
BTC price trending at $62,200 | Source: BTCUSD on Tradingview.com
Featured image by Xataka, chart by Tradingview.com