Michael van de Poppe, a noted cryptocurrency expert, recently warned that Bitcoin price could fall to the $52,000 to $55,000 range if it fails to hold its current level of around $60,000. Currently, Bitcoin (BTC) exhibits a bearish trend, with its price at $60,812 after a 1.59% decline.
Bitcoin Price at Risk of Significant Drop
Bitcoin’s price shows defined resistance at $61,300 and support at $60,208. The digital currency’s trading volume has decreased by 13.46%, indicating that the bearish sentiment might persist. This trend suggests that investors are possibly taking a cautious approach, awaiting clearer market directions.
In addition, the current price stagnation near the $60,000 mark places Bitcoin at a critical juncture. Should it fail to maintain this level, van de Poppe believes a downturn is likely. This potential drop would represent a significant retreat from recent highs, and recovery could hinge on broader market changes.
Recent econometric evaluations reveal a strong correlation between Bitcoin and major stock indices, particularly the NASDAQ 100. This connection illustrates how global economic conditions continue to influence cryptocurrency prices. Both markets are experiencing a phase of uncertainty, waiting for a shift in global liquidity conditions, which could dictate their next moves.
Bitcoin has been stuck around $60,000 for a while now.
If you are a veteran hodler that’s not your first time.
But I can understand that some people are wondering if there is a problem with Bitcoin.
The answer is no. This is not a Bitcoin problem, this is a risk assets… pic.twitter.com/wGlAN0BNPQ
— ecoinometrics (@ecoinometrics) May 11, 2024
Also Read: Grayscale Draws Parallel Between Crypto Growth & Canada Stock Market
BTC RSI Suggests Impending Price Reversal
On the technical front, the Relative Strength Index (RSI) for Bitcoin stands at 43.87, approaching the oversold territory. This indicator suggests that the market could continue to see downward pressure in the near term. The RSI is a key metric used by traders to gauge market sentiment and potential price reversals.
Moreover, the market’s current sentiment aligns with predictions of a further price drop. As Bitcoin struggles to find solid footing at the $60,000 level, the likelihood of a ‘final wash’ as predicted by van de Poppe grows, potentially setting the stage for a rebound only after touching lower thresholds.
Bitcoin ETFs Outflows Impact Market Stability
Recent reports have highlighted significant outflows from Bitcoin ETFs, with U.S. Bitcoin ETFs recording cumulative outflows of $230 million over the past ten days. This trend is particularly worrying as it suggests a declining investor interest in Bitcoin, at least in the short term.
Economist Peter Schiff has also commented on this trend, indicating that such outflows could exert additional downward pressure on Bitcoin’s price. Schiff, a long-time critic of Bitcoin, points out that these movements could be early indicators of a larger bearish trend in the market.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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