bitcoin is at a crossroads after being rejected at $62,000. Unsurprisingly, this has sparked a clash of sentiments in the market, with bulls and bears locked in an intense tug-of-war. But while the bulls continue to make themselves heard, the bears have come out of the woodwork, leading to speculation that the price could be going much lower.
bitcoin will succumb to bearish pressure
Despite the 15% drop that has already rocked the price of bitcoin, cryptocurrency analyst DonAlt doesn't think the market has seen the worst yet. In a YouTube video videoThe analyst explains that even the best-case scenario for bitcoin is still below its current price of $61,000.
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DonAlt makes the argument that the price of bitcoin is likely to fall below $60,000, which would mean it has lost a key psychological level. In this case, the bearish trend would continue, predicting another double-digit drop in the price of the cryptocurrency.
When this happens, the cryptocurrency analyst expects the downtrend to reach 30%. Not only that, he expects further sideways movements to occur, and he predicts that this sideways movement could last up to 120 days, or four months to be precise.
As for targets, the analyst believes this could see the price fall below $50,000. However, in the worst case, he sees the price falling to $40,000, but not lower. In the best case, he sees a drop to $52,000 before the price starts to recover.
“I think worst case scenario, $40,000 is the maximum downside, I think. I don't think it's going to go down any more. And, at best, if this is all bearish, I think $52,000 would be, and then, a sideways (price action) trend,” she said in the video.
btc's fall erodes market sentiment
The drop in bitcoin price has dragged down the rest of the market and caused a massive drop in investor sentiment. According to the Cryptocurrency Fear and Greed Index, investors have returned to fear, which is ultimately 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 the current value has increased, it still shows indecision among investors. Therefore, a sideways movement of bitcoin should be expected, at least over the weekend.
At the time of writing, the bitcoin price has fallen back below $61,400, erasing gains triggered by the announcement that VanEck has filed for Solana ETF with the SEC.
Featured image created with Dall.E, chart from Tradingview.com
