Bitcoin Price Plunge Continues: Analysts Predict Further Drops to $59K

• Bitcoin faces fresh downward pressure, with analysts eyeing potential drops towards $59,000.
• Loss of key moving average support and on-chain signals hint at a potential reaccumulation phase.
• “Still very possible that there is 1 more leg down for $BTC…” warns analyst Mark Cullen.

Bitcoin’s rollercoaster ride continues, with experts weighing in on where the bottom might lie. Get the latest price analysis, predictions, and insights into what these movements could mean for your crypto portfolio.

Bitcoin Risks Breaking Below $60K as Selling Pressure Mounts

After failing to hold above $61,000, Bitcoin now faces renewed selling pressure. Analyst Mark Cullen predicts a potential drop to the $59,000 level, fueled by Elliott Wave analysis. Such a move would mark the largest drawdown from Bitcoin’s recent all-time high.

Key Moving Average Support Lost

Adding to the bearish outlook, Bitcoin has lost its crucial 10-week simple moving average (SMA) support, a trend closely watched by traders. Analyst Matthew Hyland highlights the importance of this week’s candle close, as it could signal further weakness.

On-Chain Metrics Suggest Reaccumulation Phase

CryptoQuant contributor Binh Dang analyzes the Adjusted Cumulative Value Days Destroyed (CVDD) metric, suggesting a potential reaccumulation phase at lower prices. While a worst-case scenario of $40,000 is mentioned, Dang believes the current geopolitical uncertainties aren’t likely to reach the panic levels of the 2020 COVID-19 crash.

Conclusion

Bitcoin’s short-term outlook appears challenging, with technical indicators and on-chain metrics pointing toward potential further declines. Investors should brace for possible volatility and closely monitor key support levels as the market attempts to find a new equilibrium.