Bitcoin Price at Risk of 60% Drop: Analyst Insights on Volume Decline
Crypto analyst Melika Trader warns that Bitcoin could experience a 60% crash to $49,000 due to declining trading volume and support levels. The analysis indicates that the current market situation may signify the end of the bull run, as noted by CryptoQuant CEO Ki Young Ju, who also identifies bearish trends in price movements and market pressures.
Crypto analyst Melika Trader has expressed concerns about a potential 60% drop in Bitcoin price, estimating a plunge to approximately $49,000 due to a significant reduction in trading volume. This decline is critical as Bitcoin hovers just above a significant support zone known as the “most important support level” on Binance from a volume perspective.
In a detailed analysis shared on TradingView, Trader indicated that if Bitcoin loses the former trend line at $75,000 and drops below the crucial support level around $83,000, it risks falling to $49,000, back towards the high-volume range near $30,000. While this prediction presents an ultra-bearish scenario, Trader noted that only 20% of traders might be adversely affected as much of the buying activity occurred below $35,000.
Additionally, Melika Trader noted that the majority of long-term holders and institutional investors entered the market during the 2022/2023 accumulation phase. The Volume Profile Visible Range (VPVR) data indicates strong support beneath the current Bitcoin price, with most traders still in profit, even if the price retraces to $49,000.
CEO of CryptoQuant, Ki Young Ju, has opined that BTC’s bull market has concluded amidst recent price declines, emphasizing the ‘Realized Cap’ metric. He remarked that a growing Realized Cap alongside a stagnant or declining Market Cap suggests that capital is entering without pushing prices upward—a clear signal of a bear market.
Ki Young Ju highlighted that despite significant purchases, such as those from MicroStrategy, the prices are not increasing due to overwhelming sell pressure. He further noted that, historically, genuine market reversals require a minimum of six months, making a short-term rally improbable. Currently, Bitcoin’s price stands at approximately $77,000, reflecting over a 7% decline within the last 24 hours according to CoinMarketCap data.
The warnings from crypto analysts signal a precarious situation for Bitcoin, highlighting the risks associated with declining volume and support levels. With predictions pointing to a potential drop to $49,000, and indications that the bull market may have ended, investors are advised to stay vigilant. The entry points for long-term holders remain favorable, but market conditions suggest caution in the near term.
Original Source: www.tradingview.com
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