The cryptocurrency market is experiencing a significant downturn, with Bitcoin, the world’s largest digital asset, leading the decline. Analysts are sounding alarm bells, warning of a potential catastrophic drop below the $45,000 mark.
Bitcoin’s price plummeted by over 12% in the past 24 hours, marking a five-month low of $52,369. This sharp decline has reignited fears of a prolonged bear market, similar to the one experienced in late 2021 and early 2022.
Alex Kuptsikevich, a senior market analyst at FXPro, is among those predicting further downside. “Without strong buyer support, Bitcoin could easily dip below the 50-week moving average, triggering a more aggressive sell-off,” he warned. Kuptsikevich added that the $42,000 level is a crucial psychological barrier, and a breach could lead to a significant price correction.
However, not all analysts are bearish. Pseudonymous crypto analyst, the Moon, suggests that Bitcoin can still recover if it reclaims the $51,000 mark. Failure to do so, however, could accelerate the decline towards the $45,000 support level.
Also Read: Wall Street Giant Morgan Stanley Ignites Bitcoin ETF Frenzy- $237M Outflows In A Day
It’s important to note that Bitcoin’s current downturn is part of a typical bull cycle retracement. The initial surge to near $70,000 proved unsustainable, leading to a correction. While the situation looks grim, the $50,000 level remains a significant support zone. A breakdown of this level could trigger a massive liquidation of leveraged short positions, potentially exacerbating the sell-off.
As the cryptocurrency market remains volatile, investors are advised to exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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