Bitcoin's Value Drops Over 8% - Analysts Discuss Possible Dip to $60,000
Summary:
Bitcoin's value fell by over 8% within three days after peaking at $72,000. The drop coincided with the unexpected market reaction to Ethereum exchange-traded funds' approval in the US. Analysts believe Bitcoin could dip to $60,000 and may continue to consolidate within the $60,000 to $70,000 range for several weeks. The currency's immediate support stands at $66,000, and potential loss of this support might send BTC value down to the 50-day EMA at $64,838.
Bitcoin's value has seen a fall of over 8% within the past three days, following a surge to $72,000 earlier in the week. Figures from Cointelegraph Markets Pro and TradingView detail how Bitcoin's worth abruptly slipped from a peak of $71,980 on May 21 to a low of $66,260 on May 23. This decrease in Bitcoin's value coincided with the unexpected market reaction to the approval of on-the-spot Ethereum exchange-traded funds (ETFs) in the US on May 23. The approval sparked a sell-on-the-news effect which has left market traders pondering the possible depth of the slump before an enduring upswing is observed. Analysts speculate whether Bitcoin could sink to the $60,000 mark.
Crypto trader and market analyst Mags observed that the recent surge in BTC was repelled at major resistance near the all-time high of $73,835, suggesting the likelihood of a consolidation around $65,000 ahead of another recovery attempt. Fellow analyst George suggested potential lows around $60,000 could be a strategic point for new long-term investments.
Michaël van de Poppe, the founder of MN Capital, commented on Bitcoin's familiar behavior of consolidation within short time frames since the halving. He suggested the value of Bitcoin may remain constant for an extended period, possibly dropping to as low as between $61,000 - $63,000 impacted by dollar-cost averaging and capital transfer from Bitcoin to Ether (ETH).
Rekt Capital suggests Bitcoin may continue consolidating within the $60,000 to $70,000 range for several more weeks. They explained that once Bitcoin breaks out from this range, the potential for a parabolic uptrend could be in sight. Rekt Capital concluded their analysis by stating that Bitcoin needs to stabilize and the market needs to calm down after the extraordinary price performance prior to the halving.
If we observe from a technical perspective, Bitcoin's value is on immediate support at $66,000. A potential loss of this support can lead to a further decrease in value, possibly down to the 50-day EMA, currently at $64,838. The 50-day EMA sits within Bitcoin’s key support zone between $64,000 and $66,120.
After a hold in March, this support led to a 17% price jump to $72,777 on April 8. According to data from IntoTheBlock’s IOMAP chart, more than 870,800 BTC were bought by over $1.42 million addresses at this price range. As this area provides a stronger support for Bitcoin's value, in comparison to the resistance it faces during recovery, this could be where the short-term decline is limited. The opinions here are solely those of the authors and do not represent the views of Cointelegraph.
Published At
5/24/2024 8:17:12 PM
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