Bitcoin faces a significant downturn, with analyses from traders and on-chain metrics suggesting potential directions. Sjuul, a top analyst from AltCryptoGems, highlights the critical stages of Bitcoin’s current predicament. Amid the market’s volatility, investors seek clarity on whether to brace for further declines or anticipate a rebound.
What you'll learn 👉
Market Overview and Immediate Challenges
Bitcoin lost a crucial support level at $60,000, signaling a shift in market sentiment. This breakdown has stirred discussions about potential further declines. According to Sjuul, Bitcoin now resides in a transitional phase with no immediate support, floating in what he describes as “no man’s land.” He outlined two possible scenarios for Bitcoin’s path forward.
The first optimistic scenario hinges on Bitcoin reclaiming the $60,000 mark, which would suggest a mere price manipulation before another upward movement. Alternatively, a dip towards the $50,000 to $52,000 range could offer a buying opportunity, should the price find substantial support there.
Influences of External Factors
Moreover, Sjuul notes that external economic factors are set to influence Bitcoin’s price further. He anticipates that an upcoming U.S. interest rate decision will add more volatility to an already tumultuous market. Additionally, the anticipation surrounding a potential Bitcoin spot ETF, marked by a spike in trading volume, suggests that traditional investors might be re-entering the market at these lower prices.
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Show more +On-Chain Data and Market Sentiments
However, as Captain Altcoin previously reported, the on-chain analytics firm Santiment observed increasing levels of fear, uncertainty, and doubt (FUD) in the market, which could potentially signal an impending relief rally. Santiment tweeted, “After #Bitcoin’s -6.0% drop in the past 24 hours, we’re starting to see an appealing level of #FUD that could be indicating a relief rally is around the corner.”
Hence, Bitcoin’s current situation requires vigilant observation of the market’s response to these support levels and external economic indicators. Long-term investors might find solace in Bitcoin’s historical resilience, which could imply that significant downturns are often followed by substantial recoveries. As Sjuul advises, keeping capital ready for deployment could be wise, especially given the cryptocurrency’s proven bounce-back ability over the years.
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