Bitcoin Price Unlikely to Drop to $50,000, Rise Could Pressure Shorts, Predicts Expert
Summary:
Cryptocurrency expert Dylan LeClair, predicts Bitcoin's price is unlikely to fall to $50,000 due to increased support price levels and low volatility in derivatives markets. A bounce to $70,000-$75,000 could pressure short-term investors, potentially liquidating up to $271.92 million worth of short positions. LeClair finds decreases to $50,000 unlikely, given recent market patterns. Meanwhile, traders speculate on Bitcoin's price as the halving event looms on April 20.
Recent marked increases in Bitcoin's (BTC) support price levels and the absence of immediate volatility in cryptocurrency derivative markets point towards its price not being likely to fall to $50,000 any time soon, a cryptocurrency expert has indicated. Dylan LeClair, the lead analyst at UTXO Management, a digital asset fund, advanced this theory in an analysis dated April 7, suggesting that a price bounce to the $70,000-$75,000 range for Bitcoin could create intense stress on short-term investors. He mentioned that these price levels had been accumulating increasingly more short liquidations. If Bitcoin climbs up to $70,000, roughly $174.17 million will be subject to liquidation, according to data from CoinGlass.
Surpassing LeClair's range limit and reaching $75,000 would put an estimated $271.92 million worth of short positions at risk of liquidation. Although he admitted that should Bitcoin's price fall to $50,000, representing a 27% dip, it might trigger substantial long position liquidations, he considered this unlikely, given recent fluctuations in price and rising support levels.
Based on the pattern of higher lows and the current lack of volatility in the derivatives market, LeClair argued that a revisit to the previous $50,000 point is less than likely. He acknowledged that it's not impossible, but rather unlikely, noting that the last time Bitcoin dropped below $50,000 was on February 13 when it touched $49,725.
Leading cryptocurrency traders are debating the path of Bitcoin's price in the lead-up to the halving event, anticipated in a mere 13 days on April 20. This crucial event, which takes place every four years, will cut the rewards for mining blocks in half, from 6.25 BTC down to 3.125 BTC.
Cointelegraph recently documented that Bitcoin's price has surged an impressive 658% since the last Bitcoin halving in 2020. If it were to follow previous trends, projections indicate Bitcoin's price could hit an astounding $434,280 per coin by the 2028 halving period.
Renowned cryptocurrency trader, Rekt Capital, informed his 443,000 followers in a post on April 7, of his belief that the market is around one-third into the "bull market" phase. This piece does not serve as investment advice or provide recommendations. Investments and trading moves involve risk, and readers should thoroughly research before making any decisions.
Related: Bitcoin ETF champion, Eric Balchunas finally silences his skeptics: X Hall of Flame.
Published At
4/7/2024 4:47:16 AM
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