A crypto analyst has disclosed reasons why the price of Bitcoin could witness more declines to $52,000 lows. According to the analyst, Bitcoin has broken key support levels, which indicates a potential shift from a bullish to a bearish position.
Analyst Projects Bitcoin Crash To $52,000
In a post on X (formerly Twitter) on June 21, crypto analyst, Justin Bennett predicted that Bitcoin could witness a price crash to key ranges between $52,000 and $54,000. He shared a price chart illustrating Bitcoin’s recent decline, highlighting that its price remains range-bound, showing no clear downward or upward trend as it trades between support and resistance.
While Bennett believes that Bitcoin could plummet to $52,000, the analyst cited several reasons for this bearish outlook. He revealed that Bitcoin has broken past a key trend line from October 2023, suggesting a shift to more bearish territory. Additionally, the analyst noted market imbalances between February 26 and 27, indicating the possibility of less accumulation and more selling pressure for Bitcoin.
Bennett also highlighted the presence of significant liquidity below the $56,500 price threshold for BTC. He suggested that markets often move towards areas with higher liquidity due to the concentration of buying and selling of Bitcoin. As a result, the potential for Bitcoin to drop below $60,000 is greater.
On the upside, Bennett has disclosed the possibility for Bitcoin to have a bullish turnaround above $72,000, potentially capturing liquidity at these levels. However, the analyst also considers this a less likely scenario given the current state of the Bitcoin chart.
“I’ve been a supporter of crypto since I got involved in 2020, but facts are facts. The charts don’t look great, and the stock market is the only thing keeping crypto from falling off a cliff,” Bennett stated.
Investor Interest In BTC Is Waning
In one of his latest X posts, crypto analyst, AliMartinez disclosed that investors’ interest in Bitcoin has begun to diminish. According to the analyst, BTC is experiencing a significant downturn in exchange-related on-chain activities.Additionally, the pioneer cryptocurrency is presently witnessing a substantial drop in its network usage, suggesting a shift in demand for Bitcoin.
Martinez has suggested that the crypto market may be turning their attention to Ethereum, the world’s largest altcoin. He disclosed that the “crowd was growing more optimistic about Ethereum,” highlighted by the surge in the cryptocurrency’s social media mentions.
This change in investor sentiment could be attributed to the imminent launch of Ethereum Spot ETFs, which is expected to attract significant inflows into Ethereum’s market and potentially drive up the cryptocurrency’s price. Martinez also shares similar sentiments with crypto analyst Bennett, predicting a possible price correction for Bitcoin toward new lows at $54,930.
At the time of writing, the price of Bitcoin is trading at $64,265, reflecting a 2.87% decline over the past week, according to CoinMarketCap.
A crypto analyst has disclosed reasons why the price of Bitcoin could witness more declines to $52,000 lows. According to the analyst, Bitcoin has broken key support levels, which indicates a potential shift from a bullish to a bearish position.
Bitcoin's 3% drop to $58,271 comes amid investor uncertainty following the Trump assassination attempt, leading to over $116M in liquidations. All eyes now turn to the Fed's interest rate decision, with markets split between a 25 and 50 bps rate cut, Avinash Shekhar, Co-Founder & CEO at Pi42 said.
The crypto market is in a significant surrendering phase, with Ethereum and Bitcoin experiencing sharp declines. The key market factors include political uncertainty, geopolitical tensions, economic data, and ETF performance.
“The wider digital token space is following steep losses in global stock markets amid fears of a slowdown in the US economy that is spurring speculation of an emergency rate cut by the Federal Reserve.”
We show that economic uncertainty displays a negative and significant association with Bitcoin price crash risk, indicating that when economic uncertainty is high, the crash risk of Bitcoin is low. We also find that behavioral factors have a weak association with Bitcoin crash risk.
Synopsis. Bitcoin (BTC) plunged to multi-month lows on Monday, falling over 14% in 24 hours amid US recession fears and disappointing economic data. This drop reduced Bitcoin's market value by around $220 billion and led to a 15.9% decline in the global crypto market cap, now at $1.81 trillion.
The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble. As with other investments, it's important to hedge your portfolio.
The last halving occurred on April 19, 2024. If events unfold the same way they have in the past, Bitcoin's price will rise again; however, there is no guarantee that it will react the same. Bitcoin's price should continue to rise as long as it continues to grow in popularity and its supply cannot meet demand.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
The 2018 cryptocurrency crash (also known as the Bitcoin crash and the Great crypto crash) was the sell-off of most cryptocurrencies starting in January 2018. After an unprecedented boom in 2017, the price of Bitcoin fell by about 65% from 6 January to 6 February 2018.
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles.
Bitcoin fell sharply after a sell-off of major U.S. stock indices. Bitcoin has been correlated closely to the price movement of the Nasdaq index. Cryptocurrencies tumbled amid a global market sell-off spurred by recession fears.
A weak US labor market, fear of a tech bubble, and regulatory actions are factors behind Bitcoin's recent sell-off. Bitcoin (BTC) fell 8% between Sept. 4 and Sept. 6, breaking below the $54,000 support for the first time in over a month.
Considering the market capitalization of cryptocurrencies over the years, from November 2021 to March 2024, there's a clear trend of growth and fluctuation. The market peaked at $3 trillion in November 2021, experiencing subsequent ups and downs before reaching $2.58 trillion in March 2024.
The sharp rise in the funding rate and an increase in open interest suggest an increase in speculative trading or an increase in overall market confidence. It could also reflect a shift in trader expectations about future price movements, possibly anticipating high volatility or strong upward price movements.
Bitcoin's price is stuck because the market has reached a point of equilibrium regarding investor profitability, according to Glassnode. For the uninitiated, the Market Value-to-Realized Value (MVRV) Ratio metric is useful for assessing investors' average unrealized profits.
Bitcoin mining involves verifying and adding transaction records to Bitcoin's public ledger (the blockchain). Miners solve complex mathematical problems, and the first to solve it adds the next block to the blockchain and earns Bitcoin as a reward.
Introduction: My name is Rueben Jacobs, I am a cooperative, beautiful, kind, comfortable, glamorous, open, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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