Bitcoin Could Drop To $52,000 If Price Breaks Below This Mark – CryptoQuant

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In the midst of cryptocurrency market volatility, Bitcoin‘s price climbed by 1.7% over the last 24 hours, reaching just above $62,000.

According to CryptoQuant, a well-known crypto analysis firm, Bitcoin might experience a notable drop in price down to $52,000 if certain critical resistance levels are breached.

A warning is issued as Bitcoin derivatives traders exhibit extraordinary caution, reflecting increasing apprehension in this market during the current bitcoin halving cycle.

Bitcoin Risky Level

According to CryptoQuant’s assessment, the Bitcoin derivatives market is experiencing a decrease in open interest and funding rates. This observation implies that traders are adopting a more cautious approach, especially in light of the recent entry of several institutional investors into the market. Shiven Moodley from CryptoQuant pointed this out.

During this latest cryptocurrency halving, derivative traders are showing greater caution compared to past occurrences. Meanwhile, this market season has attracted a large influx of new institutional investors.

Based on the analysis, if Bitcoin’s price drops beneath the significant support of $60,000, it may trigger a substantial correction down to around $52,000. This possible decline could indicate a temporary bearish market for Bitcoin.

Derivative Uncertainty

If the price falls beneath $60,000, there’s a good chance it will drop further down to around $52,000 before potentially rebounding.

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— CryptoQuant.com (@cryptoquant_com) April 18, 2024

An institutional Bitcoin Spot ETF’s presence could soften the impact of a price drop near the $60,000 support level, as it would absorb some of the excess Bitcoin being sold during market downturns.

Moodley stated:

If the price falls below $60,000, it’s possible that we could see a drop to $52,000 before experiencing a rebound. However, considering the large influence of institutional ETFs, I wouldn’t be shocked if they buy up extra supply during sell-offs around the near-term support level of $60,000.

Analysts Sound Alarm On BTC’s Fragile Position

At the same time, crypto expert and observer Ali has added to the worry by pinpointing a crucial price mark for Bitcoin. According to his assessment, should Bitcoin slip to $50,500, approximately $15 billion worth of positions would be liquidated on Binance all at once.

#Bitcoin dropping to $50,500 will trigger over $15 billion in liquidations on #Binance alone!

— Ali (@ali_charts) April 17, 2024

A major sale or liquidation of assets could put considerable strain on the market, possibly resulting in more price drops and increased market instability.

According to Crypto Rover’s perspective, recently shared by him as a well-known analyst, there is a risk of a liquidation event for short holders if Bitcoin reaches the significant price level of $71,600 once more. In simpler terms, this means that if the price of Bitcoin goes up to $71,600 again, those who have bet against it (short sellers) might be forced to buy back the shares they sold at a higher price, resulting in substantial losses for them.

In spite of the worries raised by some, certain crypto experts including Plan B, who is famous for his Stock-to-Flow (S2F) analysis, continue to express positivity regarding Bitcoin’s future potential.

Based on Plan B’s perspective, Bitcoin’s approaching Halving could significantly boost its price. It is predicted that Bitcoin will go beyond $100,000 in value this year, and surpass $300,000 by the year 2025.

Bitcoin Could Drop To $52,000 If Price Breaks Below This Mark – CryptoQuant

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2024-04-19 10:29