Analyst Warns Of Bitcoin Breakdown Below Key Psychological Level, Says $40,000 Is Possible
Bitcoin is at a crossroads after getting rejected at $62,000. Unsurprisingly, this has led to clashing sentiment in the market, with the bulls and bears engaged in an intense tug of war. But while bulls remains vocal, the bears have come out of the woodwork, leading to speculations that the price might actually be going much lower.
Bitcoin To Succumb To Bearish Pressure
Despite the 15% crash that has already rocked the Bitcoin price, crypto analyst DonAlt does not believe that the market has seen the worst of it yet. In a YouTube video, the analyst explains that even the best-case scenario for Bitcoin is still lower than its current price of $61,000.
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DonAlt presents the argument that the Bitcoin price is likely to fall below $60,000, which would mean it has lost a key psychological level. In this case, the downtrend would continue, predicting another double-digit decline in the cryptocurrency’s price.
When this happens, the crypto analyst expects the downtrend to go as deep as 30%. Not only that, he expects more sideways movement to follow, predicting that this sideways movement could last as long as 120 days, or four months to be precise.
As for the targets, the analyst believes that this could send the price below $50,000. However, in the worst case scenario, he sees the price falling to $40,000, but not lower. In the best case scenario, he sees a decline to $52,000 before the price begins to recover.
“I think at the worst is $40,000, that’s the downside maximum I think. I don’t think it’s going to go lower. And the best case if this is all bearish I think would be $52,000 and then like sideways [price action],” he said in the video.
BTC Crash Erodes Market Sentiment
The Bitcoin price crash has taken the rest of the market down with it and this has caused a massive decline in investor sentiment. According to the Crypto Fear & Greed Index, investors are back to being fearful, something that is not ultimately good for the price in the short term.
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The index is currently sitting at a neutral 47 after dropping to a fearful 40 on Thursday. While today’s value has increased, it still shows indecisiveness among investors. Thus, sideways movement should be expected from Bitcoin, at least through the weekend.
At the time of writing, the Bitcoin price has dropped once again below $61,400, erasing the gains triggered by the announcement that VanEck has filed for Solana ETFs with the SEC.
Featured image created with Dall.E, chart from Tradingview.com
