Bitcoin is at a crossroads after being rejected at $62,000. Unsurprisingly, this has led to a clash of sentiment in the market, with bulls and bears locked in an intense tug-of-war. But as the bulls continue to cast their vote, the bears have come out of the woodwork, leading to speculation that the price could actually go much lower.
Bitcoin will succumb to bearish pressure
Despite the 15% crash that has already caused the Bitcoin price to fluctuate, crypto analyst DonAlt doesn’t believe the market has seen the worst yet. On a YouTube videothe analyst explains that even the best-case scenario for Bitcoin is still lower than the current price of $61,000.
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DonAlt presents the argument that the Bitcoin price is likely to fall below $60,000, which would mean it has lost an important psychological level. In this case, the downtrend would continue, which would predict another double-digit decline in the price of the cryptocurrency.
When this happens, the crypto analyst expects the downside to be as high as 30%. Not only that, he expects more sideways moves to follow, predicting that these sideways moves could last as long as 120 days, or four months to be exact.
In terms of targets, the analyst believes this could bring the price below $50,000. However, in the worst case scenario, he sees the price drop to $40,000, but not lower. At best, he sees a drop to $52,000 before the price starts to recover.
“I think the worst case scenario is $40,000, I think that’s the maximum downside. I don’t think it will go any lower. And the best case if this is all bearish, I think would be $52,000 and then sideways [price action]” he said in the video.
BTC Crash Erodes Market Sentiment
Bitcoin’s price crash has dragged the rest of the market along with it, causing a massive drop in investor sentiment. According to the Crypto Fear & Greed Index, investors are fearful again, something that is ultimately not good for the price in the short term.
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The index currently stands at a neutral 47, after falling to a frightening 40 on Thursday. Although the current value has increased, this still shows indecision among investors. So, a sideways move of Bitcoin can be expected, at least over the weekend.
At the time of writing, the Bitcoin price has once again fallen below $61,400, wiping out the gains brought about by the announcement that VanEck has filed for Solana ETFs with the SEC.
Featured image created with Dall.E, chart from Tradingview.com