It has been stated that there is a very high probability that Bitcoin will fall below the critical $60,000 support level in the coming weeks.
According to Lee, co-founder of hardware wallet manufacturer Ballet, a chain reaction liquidation wave could occur in the market if Bitcoin falls below the $60,000 level.
Speaking to Bloomberg, Bobby Lee said that recent price volatility is largely due to leveraged trading in spot, futures, and options markets.
Lee predicted that the price could pull back to the $50,000 to $55,000 range, especially with stop-loss orders triggered for long positions. He noted that such a move could occur more quickly and sharply during periods of high leverage.
Lee also argued that Bitcoin effectively entered a bear market after reaching a new peak last October. Therefore, he stated that investors holding long positions would experience “pain” in the short term, but noted that the market had not yet fully entered a period of capitulation.
One of the most striking points in Lee’s assessment concerned the worst-case scenario. The analyst stated that if Bitcoin were to fall by 80% from its peak, the price could drop to the $20,000 range, which would signal a true capitulation in the market.
Market experts emphasize that the $60,000 level remains a critical threshold, both psychologically and technically.
*This is not investment advice.
