- Bitcoin (BTC) recently dipped below the pivotal $60,000 mark, setting off alarms among market analysts about potential further declines.
- Analysts are cautioning that Bitcoin’s downtrend could persist unless it reclaims critical support levels, particularly on the weekly chart.
- “BTC update: bearish retest confirmed. Uncertain if support will hold. Caution advised until $63,800 is regained or lower supports are tested,” says DonAlt, a prominent crypto analyst.
Bitcoin’s recent dip below $60,000 triggers warnings of potential further declines. Analysts stress caution until critical support levels are reclaimed, highlighting significant risks in the current market.
Bitcoin Dips Below $60,000: Analyst Concerns Rise
Bitcoin’s recent slide below $60,000 has raised significant concerns among market analysts. The cryptocurrency dropped to roughly $59,700 before slightly recovering to $60,243 at the time of writing. This fluctuation has prompted experts to advise caution, pointing out that unless Bitcoin regains essential support levels, particularly the $63,800 mark, it may be poised for further drops.
Potential Decline to $40,000?
Another analyst, known as the Flow Horse, has suggested that Bitcoin could potentially decline to the $40,000 range if the current support levels fail. They argue that market sentiment is overly optimistic, with many investors underestimating the extent of possible declines. Flow Horse remarked, “The market is still lulled into a sense of overconfidence about how low we could go if this range breaks down. Almost everyone I see on my timeline and in chats is unwilling to consider Bitcoin dipping into the $40,000s again, which is shortsighted.”
Historical Correlation with 10-Year Yields
Widely followed analyst Benjamin Cowen has highlighted Bitcoin’s historical correlation with the 10-year yield rates (US10Y) as a potential indicator of future performance. Cowen notes that Bitcoin tends to decline when the 10-year yield spikes, a pattern observed in both 2022 and 2023. He comments, “If the 10-year yield is starting to spike here again into October, that could correspond with Bitcoin showing some of that seasonal weakness.”
Conclusion
The recent volatility in Bitcoin’s price underlines the need for cautious trading. Analysts stress that reclaiming critical support levels is essential to reversing the downtrend. Market participants should be prepared for potential further declines, possibly down to the $40,000 range, aligning their strategies accordingly.
