Bitcoin is at a crossroads after being rejected at $62,000. Unsurprisingly, this has led to conflicting sentiments in the market, with bulls and bears engaged in an intense tug-of-war. But while the bulls remain vocal, the bears have emerged from the woodwork, leading to speculation that the price may actually be headed much lower.
Bitcoin will succumb to bearish pressure
Despite the 15% drop that has already rocked Bitcoin’s price, crypto analyst DonAlt doesn’t believe the market has seen the worst yet. In a YouTube videoThe analyst explains that even the best-case scenario for Bitcoin is still lower than its current price of $61,000.
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DonAlt presents the argument that the price of Bitcoin will likely fall below $60,000, which would mean that it has lost an important psychological level. In this case, the downward trend would continue, predicting another double-digit drop in the cryptocurrency’s price.
When this happens, the crypto analyst expects the downtrend to reach 30%. Not only that, he expects more sideways movement to follow, predicting that this sideways movement could last up to 120 days, or four months to be more precise.
As for targets, the analyst believes that this could leave the price below US$50,000. However, in the worst case scenario, he sees the price dropping to $40,000but not lower. At best, he sees a decline to $52,000 before the price starts to recover.
“I think worst case scenario is $40,000, that’s the maximum downside, I think. I don’t think it’s going to go down. And best case scenario, if this is all bearish, I think it would be $52,000 and then sideways (price action),” he said in the video.
BTC drop erodes market sentiment
O Bitcoin price drop took the rest of the market with it and this caused a massive decline in investor sentiment. According to the Crypto Fear & Greed Index, investors are back in fear, something that ultimately is not good for the price in the short term.
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The index is currently at a neutral 47, after falling to a fearsome 40 on Thursday. Although today’s value has increased, it still shows indecision among investors. Therefore, one should expect a sideways movement of Bitcoin, at least during the weekend.
At the time of writing, the price of Bitcoin fell once again below $61,400, erasing gains triggered by the announcement that VanEck filed for Solana ETFs with the SEC.
Featured image created with Dall.E, chart from Tradingview.com