- A prominent crypto analyst suggested that the recent Bitcoin
price drop could extend below $38,130.
- The analyst also noted that during bull runs, Bitcoin price corrections are historically followed by an upward movement.
- Bitcoin price struggles to stay above $40,000 as it faces a retreat after each attempt to recover.
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Bitcoin price is holding above $40,000 again, but the community is concerned that further declines may occur.
Bitcoin Price Could Drop Again to $38,000?
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Bitcoin (BTC) recently faced a significant pullback in its price. After dipping below the $40,000 level recently, Bitcoin experienced some recovery. However, the recovery is not significant for BTC, which is trading more than 19% below the high achieved after the approval of the Spot Bitcoin ETF. Amidst the collapse frenzy, a crypto analyst warned that the BTC price could drop to $38,130.
A prominent crypto analyst suggested that the recent Bitcoin price drop could extend below $38,130. In his recent post on X, he also mentioned that the price drop below this level would indicate losses for short-term BTC holders. Therefore, he anticipates that there will be a “new panic selling wave” as short-term traders seek ways to minimize their losses. However, according to the analyst, the bearish period is temporary, and he expects the Bitcoin bull cycle to peak around late 2025.
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In another post, he stated that Bitcoin is currently reflecting historical bull runs extending from 2015-2018 and 2018-2022. He then pointed out that market projections indicate a potential peak in October 2025. He continued: “This implies BTC will have a bullish momentum for about 600 more days! So long-term Bitcoin HODLers can enjoy significant gains when this bull cycle reaches its peak.”
The analyst also noted that during bull runs, Bitcoin price corrections are historically followed by an upward movement. He encouraged traders looking to benefit from potential Bitcoin growth to take advantage of the “buy the dip” opportunity.
BTC Price Struggles for Recovery
Bitcoin price struggles to stay above $40,000 as it faces a retreat after each attempt to recover. As of the time of writing on Thursday, BTC was trading at $40,260, indicating a 0.45% increase. At the same time, the crypto had a market cap of $786.18 billion.
Meanwhile, the 24-hour trading volume for Bitcoin decreased by 34.75% to $20.09 billion. Additionally, Bitcoin price dropped to $39,508.80 before attempting to turn back. Moreover, Bitcoin price is significantly below its 10-day and 50-day EMAs, which are at 41,038 and 41,749, respectively, according to the data.
The analyst previously emphasized the significance of the $38,000 threshold on the weekly chart. He warned that a close below this critical level could serve as a potential signal for a drop in Bitcoin value, directing towards the strong support cluster around the $33,000 level.
This critical region is based on a variety of essential technical indicators, including the lower limit of a parallel channel, the 0.5 Fibonacci retracement level, and the 50-week simple SMA. However, the analyst stated that these “factors coming together potentially form a significant defense line that could stop potential BTC price drops.” This means that, for now, a drop in BTC price below $32,000 is not considered.