- Cryptocurrency expert DonAlt has recently given some projections on Bitcoin’s potential downturn.
- He expressed concerns about Bitcoin’s capacity to stay above the psychological support of $60,000.
- DonAlt’s analysis indicates Bitcoin may face a significant decline if it fails to hold this level.
Bitcoin Faces Potential Downtrend with Key Support Levels Under Threat
Potential Downside Scenarios for Bitcoin
DonAlt, a respected analyst in the crypto community, has shared his views on Bitcoin’s immediate future. He cautions that Bitcoin’s price falling below the $60,000 to $73,800 range could trigger a prolonged bear market phase. Specifically, he forecasts a period of stagnation lasting up to 120 days if this support level is broken, making it difficult for Bitcoin to return to a bullish trend. The worst-case scenario projects Bitcoin plunging by as much as 35%, reaching between $44,000 and $40,000. DonAlt stressed that this is the maximum decrease he anticipates under current market conditions.
Exploring Less Drastic Outcomes
While the worst-case scenario is bleak, DonAlt also presented a less severe projection. He believes Bitcoin might find a support level around $52,000 if the decline materializes. Although this still represents a significant drop, it would prevent a larger downward spiral and result in a phase of lateral trading. This scenario posits a milder setback for investors.
Key Insights for Bitcoin Investors
Investors need to keep several key points in mind in light of DonAlt’s projections:
- A fall below $60,000 could indicate an elongated downtrend for Bitcoin.
- Bitcoin might decrease to as low as the mid-$40,000 range in a worst-case outcome.
- If the price finds support at $52,000, a less severe downtrend may ensue.
- Maintaining a weekly closure above $63,000 could reflect a positive market trend, although DonAlt deems this unlikely.
Despite the overall bearish outlook, DonAlt did highlight a minor 10% probability of Bitcoin rallying, should it close above $63,000 on a weekly timeframe. However, he advised investors to remain vigilant and avoid overly optimistic expectations. As it stands, Bitcoin is currently trading at approximately $61,500, showing a 1.4% gain over the past 24 hours but a 4.80% decline over the past week.
Conclusion
In summary, DonAlt’s analysis provides a cautious perspective on Bitcoin’s future price movement. With critical support levels being tested, investors should prepare for potential volatility and strategize accordingly. While there’s a slim chance for bullish momentum, the prevailing sentiment suggests vigilance is key to navigating the forthcoming market phases.
