Bitcoin (BTC) Price At Risk Of Dropping 20% In Coming Month
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The trajectory of Bitcoin’s price has been a subject of intense scrutiny, with former Grayscale Director Phil Bonello offering insights hinting at a potential crash to the $52,000 level. Let’s analyze where Bitcoin is heading next.
Market Synopsis: Bitcoin to Drop at $52K?
Amidst growing concerns about inflation, geopolitical tensions, and the performance of alternative cryptocurrencies, Bonello outlined several key points in a recent post on X.
He suggested a 20% chance of Bitcoin dropping to $52,000, citing factors such as inflation concerns, fiscal spending trends, and the performance of altcoins. Bonello emphasized growing inflation as a significant concern, along with ongoing geopolitical tensions and instability in the Yen, which could impact the crypto market.
Moreover, Bonello talks about the drop in altcoins, with many dropping by over 50% and retesting support levels. Despite weak Bitcoin ETF flows, he shows confidence in BTC’s resilience in overcoming such movements, foreseeing substantial increases in ETF activity as the year progresses.
Calling it a bear trend, Bonello also noted that open interest in Bitcoin has returned to levels seen when the price was at $50,000, signaling a significant drop. Various market indicators, such as funding, basis, and skew, currently appear neutral, according to him.
Plus, crypto analyst Michaël van de Poppe offered a bearish outlook on Bitcoin, suggesting a prolonged period of slow sideways movement for the next 3-6 months, with further corrections possible. However, he anticipates further corrections in Bitcoin’s price but suggests that altcoins may outperform during this period. Van de Poppe also notes the potential for a rally in Bitcoin’s price if there is a surge in whale transactions.
Bitcoin Price Analysis
The recent decline in Bitcoin’s price, dropping below $63,000, reflects the concerns raised by Bonello and van de Poppe. Long liquidations exacerbated the decline, with over $34 million in liquidations recorded in the past 24 hours.
At present Bitcoin’s price is nearing the crucial $60K support. If it breaks, it might drop to $52K. But if it rises above $70K, a new all-time high could be on the horizon. Watch these levels for Bitcoin’s next move.
Additionally, a decrease in whale activity since March 14 has been noted, potentially contributing to the bearish trend. However, analysts suggest that a surge in whale transactions could ignite a rally in the Bitcoin price.
