Bitcoin Could Drop To $52,000 If Price Breaks Below This Mark – CryptoQuant
April 18 2024 - 7:00PM
NEWSBTC
Amidst the ongoing fluctuations in the cryptocurrency market, the
price of Bitcoin has surged by 1.7% in the past 24 hours, hovering
above the $62,000 mark. However, recent warnings from CryptoQuant,
a leading crypto analytics platform, suggest that Bitcoin could
face a significant downturn to $52,000 if specific key levels are
violated. This cautionary note comes amidst growing uncertainty in
the Bitcoin derivatives market, with derivative traders showing
unprecedented caution compared to previous halving cycles. Related
Reading: Bitcoin Halving Hysteria: Will History Repeat Itself Or
Are We Heading For A Market Meltdown? Bitcoin Risky Level
CryptoQuant’s analysis highlights declining open interest and
funding rates in the Bitcoin derivatives market, indicating a
“cautious” stance among traders, particularly with the arrival of
several institutional participants. CryptoQuant analyst Shiven
Moodley noted: At this halving, derivative traders exhibit far more
caution than in previous instances. This season witnesses the entry
of numerous new institutional players into the market. According to
the analyst, If Bitcoin’s price falls below the critical $60,000
support level, the top cryptocurrency could experience a notable
correction to $52,000, signaling a potential short-term bearish
trend. Derivative Uncertainty “If the price breaks below $60,000,
we might witness a decline to $52,000 before a subsequent rise.” –
By @ShivenMoodley Full post 👇https://t.co/XSBnfexbzZ —
CryptoQuant.com (@cryptoquant_com) April 18, 2024 However, the
presence of institutional Bitcoin Spot ETFs may mitigate the
severity of the decline by absorbing “excess supply from
liquidations” around the $60,000 support zone. Moodley stated: If
the price breaks below $60,000, we might witness a decline to
$52,000 before a subsequent rise. However, given the significant
dominance of institutional ETFs, I wouldn’t be surprised if they
accumulate excess supply from liquidations near the short-term
support level of $60,000. Analysts Sound Alarm On BTC’s Fragile
Position Meanwhile, crypto trader and analyst Ali has further
fuelled concerns by identifying a pivotal price level for Bitcoin.
Ali’s analysis indicates that if Bitcoin drops to $50,500, over $15
billion in liquidations could occur on the Binance alone. #Bitcoin
dropping to $50,500 will trigger over $15 billion in liquidations
on #Binance alone! pic.twitter.com/9wQTVwprgx — Ali (@ali_charts)
April 17, 2024 Such a significant liquidation event could exert
immense pressure on the market, potentially leading to further
price declines and heightened volatility. This outlook echoes
recent warnings from prominent analyst Crypto Rover, who has also
cautioned about a potential liquidation event affecting short
holders if Bitcoin climbs back to the crucial price mark of
$71,600. Despite these concerns, some analysts remain optimistic
about Bitcoin’s long-term prospects. Crypto analyst Plan B, known
for his Stock-to-Flow (S2F) model, has made bullish predictions for
Bitcoin’s future price movements. Related Reading: Bitcoin Bears
Beware: $3 Billion Short Liquidation Looms At This Price Mark,
Warns Analyst According to Plan B, Bitcoin’s upcoming Halving event
will serve as a central driver for price increases, with the
cryptocurrency expected to surpass $100,000 this year and exceed
$300,000 by 2025. Featured image from Unsplash, Chart from
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