Bitcoin Experiences Over 8% Drop, Analysts Predict Slide into $60,000-$65,000 Range
Summary:
The value of Bitcoin (BTC) has experienced an over 8% drop, following a surge to $72,000 in recent days. This decline parallels a downturn in the wider cryptocurrency market and mounting concerns over US inflation. Analysts predict Bitcoin's value could fall into the $60,000-$65,000 range, with future FOMC meetings and CPI data likely to influence this prediction. Technically, Bitcoin's price hangs on a precarious support threshold of $65,000 and if this support fails, the price might plunge further. Regardless, the area between $62,800 and $64,815 continues to offer robust support for Bitcoin's value.
Following a surge to $72,000 in recent days, Bitcoin's (BTC) value has slumped over 8% in the past four days. Statistics from Cointelegraph Markets Pro, as well as Coinbase, show that BTC fell 4.5% from a peak of $69,547 on the 11th of June, reaching a daily low of $66,680.
This slump in Bitcoin’s worth is in line with a downturn in the broader cryptocurrency market, reinforcing worries related to inflation in the United States. Furthermore, outflows from American Bitcoin exchange-traded funds (ETFs) as of June 10 could be intensifying the downward trend for BTC's value.
Analysts are now hypothesizing a Bitcoin value of less than $65,000. In 2024, Bitcoin exhibited exceptional price trends, achieving record highs before the halving event and increasing in value more than 50% since the start of the year. However, repeated failures to surpass the $72,000 mark have sparked speculation that Bitcoin may have hit its peak value.
Presently, BTC is trading at 10% under its record peak of $73,835 and has fallen 7% from its recent high of around $72,000. As such, several experts predict that Bitcoin could drop into the $60,000 to $65,000 range.
Interestingly, MN Capital founder, Michael van de Poppe, predicts that Bitcoin's value will fall into the upper region of the $64,000 to $65,000 zone. The forthcoming Federal Open Market Committee (FOMC) meeting and unveiling of Consumer Price Index (CPI) data may be pivotal factors in this prediction.
Liquidity analysis resources, Material Indicators, caution that slim bid support could see Bitcoin's value plummet to $60k. The tremendous liquidity accumulating above the $60k support level adds credibility to this scenario, supporting Material Indicators' bearish outlook, as demonstrated by Coinglass data.
From a technical stance, Bitcoin's price is presently sitting on a precarious support threshold of $65,000. A drop past this point might prompt a further plunge in value, churning up demand-side liquidity below and directing it toward the 200-day EMA, currently sitting at $63,934.
Moreover, Bitcoin's key support range, falling between $62,800 and $64,815, features the 50-day EMA. Following retention in March, this support gave way to a 14% price hike to $72,777 on April 8th. As this area offers relatively robust support for Bitcoin's value, it may act as short-term caps for downsides in the future.
It's worth noting that the opinions, perspectives, and thoughts presented here are the author's and based on personal analysis. They do not represent nor reflect Cointelegraph's views or opinions.
Published At
6/11/2024 7:58:18 PM
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