BitMEX Co-Founder Hayes Says Bitcoin Could Drop Below $35,000!

• The world’s largest cryptocurrency, Bitcoin (BTC), shows a slight increase of 0.3%, reaching $40,010.
• In case Bitcoin drops below the $35,000 threshold, Hayes has revealed a plan for opportunistic buying.
• Martinez suggests a scenario where Bitcoin could drop to $32,700, aligning with the 50% Fibonacci retracement level.

While Bitcoin’s price experiences a mild recovery, Arthur Hayes, the co-founder of BitMEX, has disclosed potential levels to which the Bitcoin price could drop.

Arthur Hayes Reveals Striking Bitcoin Prediction

The world’s largest cryptocurrency, Bitcoin (BTC), shows a slight increase of 0.3%, reaching $40,010. Some on-chain indicators suggest that the BTC price could potentially drop another 10-15% from this point.

BitMEX co-founder Arthur Hayes, in his recent statement sharing views on the Bitcoin market, predicted that Bitcoin, which reached a peak of $48,000 after ETF approval, could potentially experience a 30% decline. Hayes believes that the cryptocurrency could find support in the range of $30,000 to $35,000.

Adopting a cautious approach, Hayes disclosed that he purchased $35,000 end-of-term options on March 29, 2024, and is prepared for a possible market decline. He also outlined a strategic move to liquidate trading positions in Solana and Bonk with marginal losses.

In the event of Bitcoin falling below the $35,000 threshold, Hayes revealed a plan for opportunistic buying, emphasizing a focus on accumulating positions in Solana and WIF. Hayes expressed a negative stance on the current outlook for Bitcoin, stating it is “very heavy” and expecting it to fall below $40,000.

The strategic move of opening long positions in $35,000 end-of-term options on March 29, 2024, aligns with the expectation of a market decline associated with the announcement of the U.S. Treasury’s periodic repayment scheduled for January 31, 2024.

BTC On-chain Data

In a recent analysis by leading crypto analyst Ali Martinez, the focus was on patterns observed in Bitcoin (BTC) price movements during past bull cycles. Martinez highlighted a recurring behavior where Bitcoin tends to retrace to the 50% Fibonacci level after reaching the 78.6% Fibonacci level following the last two bull cycles.

Drawing parallels with the current market scenario, Martinez signaled a potential correction in the near term, indicating that Bitcoin could reach $32,700, aligning with the 50% Fibonacci retracement level.

Explaining a broader sentiment cycle for Bitcoin, Martinez pointed out transitions from collapse to hope, optimism, and belief, resembling historical shifts. Following this cycle, there typically comes a phase of concern characterized by a price correction. The analysis suggests that despite the ongoing retracement, Martinez remains optimistic, indicating that the observed 20% correction could be a temporary hurdle before the resumption of the overall upward trend for BTC.