In a scathing assessment of bitcoin, the largest digital asset by market capitalization, popular cryptocurrency analyst and trader Mags has x.com/thescalpingpro/status/1806241066884211174″ target=”_blank” rel=”noopener nofollow”>warned btc investors, highlighting that the crypto asset could fall to $50,000 in the short term.
Will bitcoin soon fall to $50,000?
Mags has identified a crucial element that bitcoin It must manage to avoid a drop below the $50,000 price level. This warning comes amid a wave of pessimism and increased uncertainty in the cryptocurrency market, which has seen strong swings and a negative overall outlook in recent weeks.
The analyst bases his forecast on bitcoin's long-term trend around the range bottom, which can result in a rise or fall in value. According to Mags, the digital asset is testing the range bottom for the fifth time since March.
He further noted that the price has been moving in a tight range for the past few months and a significant breakout could be on the horizon. However, the price is now in a crucial support zone that needs to be contained to prevent a fall. Another downtrendpossibly up to the $50,000 mark.
Although Mags noted that the crypto asset has already experienced a false breakout below $60,000, a quick recovery, and a solid run to the range high, if the price falls below the range low once again, the development will be considered as a genuine breakup rather than a fake breakup.
The post read:
We have already witnessed a false break below $60,000 followed by a quick recovery and a good rise to the high of the range. If the price falls back below the low of the range, we will consider it a real breakout rather than a false breakout.
So far, the cryptocurrency expert has highlighted the absence of a significant support zone before the $50,000 and $52,000 price marks, noting that the price is holding the low range “very well” and the overall outlook for bitcoin remains optimistic.
In light of the recent increased volatility and bearish sentiment in the market, Mags' analysis highlights the importance of bitcoin staying above critical support levels and improving market conditions to maintain its value.
Dips are a good time to buy btc
For the last 3 months, btc has been in a consolidation phase, which has created fear and uncertainty among investors, with most of them selling to minimize losses whenever the asset falls.
Offering x.com/thescalpingpro/status/1806590904935080068″ target=”_blank” rel=”noopener nofollow”>perspectives On this topic, Mags has advised investors not to be discouraged, as consolidations or drops after the bitcoin Halving are very common, as demonstrated by each cycle. According to Mags, these market drops have historically favored the acquisition of btc.
The magazines revealed that many investors They mistake this period for a distribution or a cycle peak. As a result, they sell early or miss out on the best part of the rally, which he believes usually starts a few months after the Halving. Furthermore, the analyst has highlighted that these investors could miss out on a 250% gain in this cycle if btc hits $200,000..
Featured image from iStock, chart from Tradingview.com
