In a recent price analysis, a cryptocurrency analyst highlighted Key Support Level for Bitcoin (BTC)highlighting the possibility of a pioneering cryptocurrency fall significantly to recent lows if certain key levels cannot be maintained.
Bitcoin Risks Collapse to $42,000
August 1st anonymous cryptocurrency analyst DonAlt common deeply price analysis and future prospects for Bitcoin on YouTube channel TechnicalRoundup. Bitcoin could experience a potential price crash to $42,000 if it fails to hold the key support level at $63,000.
Based on Recent Bitcoin Price Movements and current market conditions, the cryptocurrency is seen facing a key support level at $63,000. According to DonAlt, Bitcoin has previously reclaimed the $60,000 level, following a period of volatility and constant declines.
The cryptocurrency analyst revealed that the $60,000 price was seen as a bullish sign, possibly suggesting further gains. However, despite the price jump, Bitcoin is currently facing rejection and has not been able to continue its expected raise in dynamics.
During his analysis, DonAlt pointed out that if Bitcoin price successfully holds above the critical support level of $63,000, future bullish scenario remains essential. On the other hand, if the cryptocurrency falls below this key level, its price outlook will potentially become much more worrying and bearish.
DonAlt predicts Bitcoin is falling apart around $52,000 and $42,000 if it fails to sustain the price near $63,000. He further indicated that the cryptocurrency could be testing these lower price levels as potential recent support zones.
Looking ahead, the cryptocurrency analyst stressed the importance of watching Bitcoin’s behavior and market movements at $63,000, highlighting the importance of this critical support level to avoid further downward pressure for the cryptocurrency. Based on CoinMarketCap reports, Bitcoin price is well above the $63,000 support level.
At the time of writing, Bitcoin is trading at $64,104. Despite a 4.44% drop over the past week, cryptocurrency remains on an upward trajectorygradually approaching the $70,000 threshold.
BTC bulls feel the effects of rising bearish sentiment
Popular cryptocurrency analyst Ali Martinez revealed on X (formerly Twitter) fasting On August 1, many investors who were betting on the price of bitcoin to rise suffered significant losses the last crisisMore than $2.5 billion in leveraged long positions were liquidated as Bitcoin fell, according to Coinglass data under $63,000.
Martinez revealed that investors who are currently betting on a potential drop in Bitcoin are becoming overconfident. The analyst further revealed that if Bitcoin price bounces back to $70,440, which could result in the liquidation of almost $2.4 billion tiny position leverage.
Featured image created with Dall.E, chart from Tradingview.com
