The ongoing sharp sell-off in the cryptocurrency market has caused Bitcoin to fall below $63,000 and Ethereum to drop to around $1,800.
As the market decline continues, analysts predict that the market is not yet at the point of complete collapse.
Speaking to The Block, Presto Research analyst Min Jung stated that BTC’s drop today, which extended below $63,000, was due to a worsening overall sentiment in the crypto market rather than any single factor.
In the short term, he added, macroeconomic news such as US tariffs and escalating US-Iran tensions are increasing risk aversion among investors and could trigger further declines.
Bitcoin (BTC) Could Fall Below $50,000!
Bitrue Research Leader Andri Fauzan Adziima noted that short-term investors have experienced significant losses, but long-term investors haven’t yet collectively sold off. At this point, on-chain HODL signals indicate a quiet accumulation in a tactical risk-reduction process.
The analyst also shared his price expectations, stating that if BTC fails to maintain the $60,000 level, it could fall to $47,000.
Adziima stated that Bitcoin tested a critical support level between $60,000 and $63,000, and that if BTC successfully holds this support level, a short squeeze could occur, also influenced by negative funding rates.
He also added that improving macroeconomic conditions and the resumption of ETF inflows could support this rise.
Conversely, if Bitcoin falls below $60,000, the price could drop to around $50,000 or even as low as $47,000. In this scenario, long-term investors might give up and sell, potentially creating an even deeper market bottom.
“A drop in Bitcoin below $60,000, in a worsening macroeconomic environment and, in a worst-case scenario, with an acceleration of phased liquidations, could lead to the price falling to around $50,000 or even as low as $47,000.”
That could then finally force long-term investors to surrender, potentially creating a deeper market bottom before the actual cycle bottom.
*This is not investment advice.