Bitcoin
How far can Bitcoin fall?
Everyone in the cryptocurrency world is wondering whether Bitcoin will fall further and if so, how low it could fall. Bitcoin got stuck in a pattern and dropped to around $56k over the weekend, trying to climb back up to $57k and beyond, but then dropped again.
Crypto Russia Analyst noted that on the chart, Bitcoin rises for a bit, and then suddenly drops. The analyst also acknowledged the negativity and alarmism prevalent in the community, attributing it to the broader feeling of uncertainty in volatile markets.
Furthermore, the market awaits developments related to Mt. Gox Creditors. There is uncertainty about whether these lenders 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 whether these are directly related to Mt. Gox lenders.
These uncontrollable events have led to significant fear, uncertainty and doubt (FUD) in the market, according to the analyst. If Bitcoin Liquidation continues, it is believed that there is a significant burnout of sellers.
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 bigger drop could potentially take it to around $42,000.
However, the analyst does not believe that 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 outlook. “Bitcoin remains resilient due to its decentralized nature and resistance to manipulation,” he explained.
He emphasized that volatility is normal in cryptocurrency investments, be it Bitcoin, Dogecoin, Cardano or Solana. Drawing on historical data, he highlighted the cyclical nature of market movements, noting frequent periods of price declines followed by recoveries or sideways trends.
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