Ongoing Bitcoin Downtrend: Concerns of a Slide Below $60,000
Bitcoin's price continues to plummet, raising fears of a potential decline towards $25,000, as market analysts weigh in on the future of the cryptocurrency.
Bitcoin (BTC) has seen a significant downturn recently, reflecting the overall slump in the crypto market. Analysts opine that the situation might become dire for investors, with a potential drop below $60,000 on the horizon.
Buckle Up
The leading cryptocurrency fell below $70,000 for the first time since November 2024. Currently, it is trading at around $69,300, a decline of 21% over the past week alone.
The prominent analyst Ali Martinez suggested that bearish trends may be emerging. He noted that historically, every time Bitcoin dropped below the 100-week simple moving average (SMA) since 2015, it failed to recover promptly and plummeted to the 200-week SMA next. His analysis indicated a possible drop to around $57,600. Martinez previously claimed that after dropping below $77,086, key support levels for Bitcoin are at $60,176 and $47,824.
Another trader, active on X under the handle Hardy, offered a gloomy prediction, envisioning an even larger downturn in the next few months, predicting a possibility of a crash to about $30,000.
Meanwhile, PlanB, the anonymous creator of the Stock-to-Flow model, believes various outcomes could unfold, including a plunge to $25,000 or a correction to somewhere between $50,000 to $60,000. He reached out to his followers on X to gather opinions on the matter, finding that nearly half of the respondents consider a drop to $50K-$60K the most likely scenario, while only 15% predict a nosedive to $25K.
PlanB Survey, Source: X
Recent activities indicate growing investor caution. Data from CryptoQuant shows an increase in the amount of Bitcoin held on exchanges, typically seen as a sign that market players may be preparing to sell.
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BTC Exchange Reserves, Source: CryptoQuant
Is This the End?
Even though Bitcoin’s current state seems precarious, several metrics point to a potential recovery. The Relative Strength Index (RSI), which assesses the rate and magnitude of recent price shifts, shows a reading of approximately 19, indicating that the asset might be oversold and due for a rebound. Ratios above 70 are considered bearish territory.
BTC RSI, Source: CryptoWaves
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