Bitcoin is at a crossroads after being rejected at $62,000. Not surprisingly, this has led to conflicting sentiments in the market, with bulls and bears locked in a fierce battle. But while the bulls remain vocal, the bears have come out of hiding, leading to speculation that the price could actually drop much lower.
Bitcoin will succumb to bearish pressure
Despite the 15% crash that has already rocked the price of Bitcoin, cryptocurrency analyst DonAlt doesn’t believe the market has seen the worst yet. On YouTube videoThe analyst explains that even the best-case scenario for Bitcoin is still lower than its current price of $61,000.
DonAlt presents the argument that Bitcoin’s price will likely fall below $60,000, which would mean it has lost a key psychological level. In this case, the downward trend will continue, predicting another double-digit decline in the price of the cryptocurrency.
When this happens, the cryptocurrency analyst expects the downtrend to reach as much as 30%. Moreover, he expects further sideways movements, predicting that this sideways movement could last as long as 120 days, or more precisely, four months.
As for targets, the analyst believes this could push the price below $50,000. However, in the worst-case scenario, he predicts the price will drop to $40,000, but not lower. At best, he predicts a drop to $52,000 before the price starts to rebound.
“I think the worst case scenario would be $40,000, that’s the max downside in my opinion. I don’t think it will go any lower. And the best case if everything is bearish, I think $52,000 and then something sideways [price action]– he said in the recording.
BTC crash worsens market sentiment
The Bitcoin price crash dragged the rest of the market down with it, causing a huge drop in investor sentiment. According to the Crypto Fear & Greed Index, investors have become fearful again, which is ultimately not good for the price in the low term.
The index currently stands at a neutral level of 47 after falling to a worrying level of 40 on Thursday. Although today’s value has increased, it still shows indecision among investors. Therefore, sideways movements in Bitcoin should be expected, at least over the weekend.
At the time of writing, Bitcoin’s price has fallen back below $61,400, erasing gains made following the announcement that VanEck had filed with the SEC for the Solana ETF.
Featured image created with Dall.E, chart from Tradingview.com
