The cryptocurrency market is shaken by a spectacular drop in bitcoin, leaving investors on edge. Experts predict even heavier losses for the flagship crypto.
- PHPzOriginal
- 2024-07-12 00:05:57616browse
Several crypto market experts agree on a potential drop in bitcoin below $50,000.
The cryptocurrency market is experiencing turbulence as bitcoin makes a spectacular drop, leaving investors on edge and experts predicting even heavier losses for the flagship crypto. Critical thresholds and key levels are being mentioned, and these alarming forecasts suggest a period of great uncertainty in the market.
Several crypto market experts agree on a potential drop in bitcoin below $50,000. Markus Thielen, founder and CEO of 10x Research, highlighted that the psychological threshold of $60,000 is crucial for miners and buyers of Bitcoin Spot ETFs. He warns: “Only poorly informed traders are willing to buy here. The break of this support could lead to a sharp drop to $50,000.”
The weak seasonal performance of the third quarter, especially the months of August and September, which are historically unfavorable for bitcoin, could worsen the current situation according to the expert. Richard Galvin, co-founder of Digital Asset Capital Management, added a political dimension to this forecast by signaling that the possibility of a less crypto-friendly Democrat candidate replacing Joe Biden could influence the drop.
Andrew Kang, a well-known investor in the sector, predicted an even more dramatic drop, estimating that his initial forecasts of a drop towards $50,000 were too conservative. He now envisions a possible drop to $40,000, followed by a few months of volatility before a potential bullish recovery.
Alex Kuptsikevich, analyst at FxPro, shares this pessimistic view. He notes that bitcoin has broken below the lower limit of its descending channel and has fallen below the 200-day moving average. A drop to $51,500 is now more likely than a rebound to $65,800 according to the expert.
The drop in bitcoin is explained by several major factors. The German government recently liquidated around 1,300 BTC, worth $75.53 million, increasing the selling pressure on the market. This transaction was carried out towards exchanges Bitstamp, Coinbase, and Kraken. The imminent repayments from Mt. Gox, scheduled for early July, could exert additional downward pressure on the market. According to Arkham Intelligence, wallets associated with Mt. Gox have made test transactions, in preparation for the massive distribution of over $9.4 billion intended to repay more than 127,000 creditors.
The drop in bitcoin below the 200-day moving average, set at $58,492, has intensified investor concerns. This triggered massive liquidations in the derivatives market, reaching $100.4 million, including $86 million in long positions forced to close. Bitfinex analysts also noted a decoupling of bitcoin from US equities, which does not help the market situation.
In the face of the significant drop in bitcoin, investors must prepare for a possible extension of volatility. Analyses indicate that economic and political factors will continue to influence prices. Investors need to stay vigilant and closely monitor developments to avoid significant losses.
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