Bitcoin’s recent drop in price has taken it back to levels we last saw after the April halving, sitting around $58,560. This decline has sparked new talks among analysts and investors about what’s next for the top cryptocurrency. Currently bitcoin is struggling to break higher resistance levels, and some experts are noticing a pattern called a “double-top,” indicating a potential drop to $50,000.
Bitcoin Price To Dip Below $50k
According to insights from 10X Research, a trusted on-chain analytics firm, warning that Bitcoin is entering a critical phase marked by declining liquidity and growing market uncertainty.
https://t.co/adUbMPLuL6
— Dylan LeClair 🟠 (@DylanLeClair_) April 6, 2024
However, the firm’s analysis presents a concerning possibility, as Bitcoin’s price could plummet to $50,000 or even lower, with $45,000 as a plausible target. Analysts are advising investors to be careful about a “double top” pattern, which often comes before a big price drop. The emergence of this pattern suggests that Bitcoin might have reached its highest point and could be in for a bigger fall soon. Furthermore, the analysts also point out that as Bitcoin struggles, there’s less money being traded overall. And it’s not just Bitcoin; similar warnings about Ethereum and Solana have proven to be right recently, showing that it’s a cautious time for all digital assets.
FUD Among Bitcoin Investor
Echoing a similar bearish stance prominent crypto trader Jelle drew parallels between the current state of Bitcoin and its behavior during the 2016-2017 cycle. According to Jelle, Bitcoin is showing similar patterns of consolidation around previous cycle highs, suggesting a period of uncertainty and choppy price movement.
#Bitcoin is still playing out similarly to 2016-2017 — chopping around the previous cycle highs.
More and more fud is being offloaded at current prices, adding to the shakeout effects.
Either it’s very over, or we’re close to a bottom.
I’m betting on the latter. pic.twitter.com/NqDfUzEvz8
— Jelle (@CryptoJelleNL) June 24, 2024
Moreover, Jelle noted an increase in fear, uncertainty, and doubt (FUD) being circulated at current price levels, contributing to market volatility and shakeout effects.More By This Author:Dogecoin Army Awaits DOGE Integration On X As A Premium Payment Solution
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