Everyone in the crypto space is currently wondering if Bitcoin will go lower and, if so, how low it might go. Bitcoin has been stuck in a pattern and it dropped to about $56k over the weekend, trying to climb back up to $57k and beyond, but then it dipped again.
Analyst Crypto Rus observed that in the chart, Bitcoin goes up a bit, then suddenly drops. The analyst also acknowledged the prevalent negativity and fear-mongering in the community, attributing it to the broader sentiment of uncertainty in volatile markets.
Additionally, the market is awaiting developments related to Mt. Gox creditors. There is uncertainty about whether these creditors will sell their Bitcoin and Bitcoin Cash, contributing to the current market fear and uncertainty. While there have been large transactions indicative of whale selling, it is unclear if these are directly related to Mt. Gox creditors.
These uncontrollable events have led to significant fear, uncertainty, and doubt (FUD) in the market, according to the analyst. If Bitcoin’s sell-off continues, it is believed that there is significant seller exhaustion.
What’s Next For Bitcoin?
Looking ahead, if the selling pressure continues, the analyst said that Bitcoin’s next support level could be around $51,000 to $52,000. A further drop could potentially bring it down to around $42,000.
However, the analyst does not believe Bitcoin will fall to such lows, citing potential stabilization due to seller exhaustion and continued buying by Wall Street and long-term holders. Despite these challenges, the analyst expressed confidence in Bitcoin’s long-term prospects. “Bitcoin remains resilient due to its decentralized nature and resistance to manipulation,” he explained.
He stressed that volatility is par for the course in cryptocurrency investments, whether it’s Bitcoin, Dogecoin, Cardano, or Solana. Drawing on historical data, he pointed out the cyclical nature of market movements, noting frequent periods of price dips followed by recoveries or sideways trends.
Also Read: Crypto Investment Strategy: Top 5 Best Bet Altcoins Amid Market Crash
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