Altcoins
Bitcoin price could drop to this level while altcoins could drop 30-40%
In a recent analysis by The Fomo FactoryAn expert analyst has examined the bullish and bearish signals in the current Bitcoin market, raising concerns about a possible correction. Just a few days ago, Bitcoin recorded a historic bullish close, surpassing its previous all-time high on a weekly, monthly, and quarterly basis. However, the euphoria seems short-lived as a potential downturn now threatens the gains. The crucial question looming over investors’ minds is whether this pullback indicates more trouble ahead.
The analyst highlighted the difficulty Bitcoin faces in breaking above the $70,000 level, suggesting a possible prolonged period of volatility. Despite observing higher lows in the current trend, there are also lower highs, indicating a state of uncertainty in the market.
Exploring Downside Targets and Support Levels
After reviewing the possible scenarios, the analyst has set downside targets for Bitcoin. Key levels to watch include $60,000, where there is significant support, and the Fibonacci retracement level from $52,000 to $56,000. While a drop to $60,000 seems plausible, the analyst cautions against ruling out a deeper correction into the $48,000 to $42,000 range.
The situation is equally dangerous for altcoins, which tend to move in tandem with Bitcoin. Since they are robust, they always seem susceptible to Bitcoin’s movements. The analyst suggested that altcoins could drop by 30-40%; therefore, investors should prepare for periods of volatility.
The analyst admitted, however, that this is a bear market. He compared this phenomenon to previous bull markets, noting that it is usual for corrections to occur and precede more bullish momentum. The potential for a rebound remains, however, due to the halving and a bullish outlook.
While acknowledging the likelihood of a correction, the analyst cautioned investors against panicking but rather seeing this as an opportunity where assets can be accumulated at lower prices.