Bitcoin specialists predict that the BTC price could drop to $50,000 before it makes a big upward leap. Several experts think Bitcoin will fall below $50,000 because it keeps failing to break through higher resistance levels. This has led to a pattern called a “double-top price pattern,” which may signal a bigger drop.
What are Bitcoin Predictions Based On?
Markus Thielen, the founder of 10x Research, mentioned on June 24 that Bitcoin seems to be following this double-top pattern. This pattern happens when the price reaches two similar high points with a small dip in between, staying above a line called the “neckline.” If the price goes below the neckline, it usually falls by the distance between the peaks and the neckline.
Thielen predicted that this pattern will lead to Bitcoin falling to $50,000, or even $45,000. He underlined that the current phase of range trading is complicated, with frequent false breakouts.
Thielen pointed out that when Bitcoin prices reach their peak and start to drop, regular investors often lose out, leading to significant declines in cryptocurrency. Even with potential positive effects from the US elections and the Consumer Price Index (CPI) later in 2024, he believes a bigger price drop could still happen.
How Bitcoin’s Halving Affected the Drop
Since the Bitcoin halving event on April 20, well-known crypto traders have been guessing about Bitcoin’s price. This event cut Bitcoin miners‘ rewards from 6.25 BTC to 3.125 BTC. Crypto trader Jelle noticed that Bitcoin’s price movement looks similar to what happened after the 2016 halving, with prices fluctuating around previous cycle highs.
Jelle also mentioned that a lot of fear, uncertainty, and doubt (FUD) is affecting current prices, suggesting a shakeout effect. He thinks either the worst is over, or Bitcoin is nearing its lowest point.
Another trader, Rekt Capital, believes there is significant potential for price increases in the short term. On June 24, he said the market is about 40% into the “bull market” phase. This means the recent drop below $60,000 could be a good chance for buyers to get more Bitcoin before it rises sharply.
In summary, Bitcoin analysts have different opinions about the near future of BTC prices. Some think a drop to $50,000 or lower is likely due to technical patterns and market behavior. Others view the recent price drops as a buying opportunity before a major upward trend. Despite these varied views, the market remains unpredictable, with many factors potentially influencing Bitcoin’s path.
Disclaimer
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Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.
Cryptocurrency wallets are digital tools for storing and managing your crypto assets.
Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.
