- A trader suggests that the anticipated increase due to the halving event in April did not occur due to a general lack of a market catalyst.
- He refers to periods when both long and short term holders were 94% profitable, followed by a shift towards selling, leading to significant declines in the following four to six months.
- The trader suggests that the current cycle could follow a similar course, while another crypto trader predicting the bottom of Bitcoin in 2022 speaks of a serious risk for Bitcoin.
An analysis of Bitcoin’s current market trends, with expert insights suggesting potential risks and future scenarios. The article explores the impact of the April halving event and the potential for significant market shifts.
Bitcoin’s Potential Risk Below $60,000
According to FxPro trader Alex Kuptsikevich, if Bitcoin (BTC) closes below the $60,000 level in the coming days, it could trigger a panic sell-off. Crypto traders are targeting a break above $65,000 before sentiment is considered bullish. As followed on CoinOtag, BTC has been ranging between $60,000 and $70,000 since March. Furthermore, the halving event in April turned into a news selling game amidst a general lack of a market catalyst. Meanwhile, inflows into exchange-traded funds (ETFs) have decreased in the past few weeks, contributing to the downward trend.
Signs of ‘Massive’ Weakness in Bitcoin
Trader and analyst DonAlt suggests that Bitcoin is at risk, pointing out the danger of losing the crucial $61,000 level again after reclaiming it earlier this month. According to the trader, a daily close below $61,000 would be a significant sign of weakness, triggering a sell-off event that would bring BTC close to $50,000. From this point, DonAlt suggests that a failure to regain this range would indicate a massive sign of weakness, potentially leading to a larger devastation.
Conclusion
The current market trends suggest potential risks for Bitcoin, with a potential sell-off if it falls below certain levels. Traders and analysts are closely watching these developments, with the anticipation of significant market shifts in the coming months. The future of Bitcoin remains uncertain, with various factors influencing its trajectory.
