Bitcoin’s price has recently been rejected at $62,000, sparking conflicting sentiments in the market. While bullish investors remain optimistic, bears are now emerging from the shadows, suggesting that the price may continue to drop. Crypto analyst DonAlt has weighed in on the situation, stating that the worst may be yet to come for Bitcoin. Despite the 15% crash that has already occurred, DonAlt believes that there is a possibility for the price to fall below $60,000, marking a significant loss of a key psychological level. In the analyst’s view, this could lead to another double-digit decline in the cryptocurrency’s value.
DonAlt predicts that if Bitcoin falls below $60,000, the downtrend could deepen, potentially reaching a 30% decline. Furthermore, he anticipates a period of prolonged sideways movement that could last as long as 120 days, equivalent to four months. This extended period of indecision and stagnation could further impact investor sentiment and prolong the uncertainty surrounding Bitcoin’s price trajectory.
In his analysis, DonAlt outlines potential price targets based on different scenarios. He believes that in the most bearish case, Bitcoin could drop to $40,000, but he does not foresee the price falling lower than that. On the other hand, in the best-case scenario, he envisions a decline to $52,000 before the price stabilizes. However, he emphasizes that even the more optimistic scenario still implies a significant downward movement for Bitcoin.
Market Sentiment and Crypto Fear & Greed Index
The recent Bitcoin price crash has had a domino effect on the rest of the market, leading to a decline in investor sentiment. The Crypto Fear & Greed Index reflects this shift, with investors returning to a state of fear. The index, currently at a neutral 47, had previously dropped to a fearful 40 on Thursday, indicating a shift in perception among market participants. The lingering fear and uncertainty could contribute to ongoing sideways movement in Bitcoin’s price in the near term.
As of the latest updates, the Bitcoin price has dipped below $61,400 once again, undoing the gains prompted by VanEck’s announcement of filing for Solana ETFs with the SEC. The market remains volatile and unpredictable, with conflicting signals and divergent predictions from analysts. In light of the prevailing uncertainty and fluctuating investor sentiment, Bitcoin’s price may continue to experience turbulence in the short term, making it challenging to foresee its immediate trajectory.
The recent rejection at $62,000 has set Bitcoin on a precarious path, with potential for further declines in the coming weeks. The conflicting views and uncertain market dynamics highlight the need for caution and careful analysis when navigating the cryptocurrency landscape. As the tug of war between bulls and bears intensifies, investors must brace themselves for potential price swings and extended periods of sideways movement in the near future.