Bitcoin (BTC) experienced a major crash last week, falling as low as $60,000. However, it subsequently recovered and rose to $70,000.
However, this rise doesn’t seem to have convinced some analysts. Indeed, predictions continue to emerge in the market that despite Bitcoin’s short-term recovery, a true bottom has not yet been reached.
Many analysts have predicted that Bitcoin could experience further declines. At this point, an analyst known as BitBull stated that the bottom for BTC has not yet been reached, pointing to $50,000.
“Bitcoin’s ultimate capitulation hasn’t happened yet. The true bottom is likely to be below $50,000. At this level, most ETF buyers will lose money.”
According to on-chain data, the average purchase price for US spot Bitcoin ETFs is around $82,000. This means that any further decline would expose most ETF investors to loss territory.
Another analyst using the pseudonym Filbfilb shared the same view, stating that Bitcoin’s current price movements resemble the 2022 bear market and sharing a chart to support this claim.
Referring to the 50,000-week exponential moving average (EMA, approximately $95,300), the analyst commented, “It’s difficult to see the current recovery as a structural recovery,” pointing to further decline.
Technical analyst Tony Severino also stated, based on various indicators, that new lows are almost certain.
Finally, speaking to Cointelegraph, Caleb Franzen, founder of Cubic Analytics, also referred to the 2022 bear market, stating that the recent recovery could be a trap and that further declines are possible.
“In 2022, Bitcoin recovered once after retesting its 200-week moving average, but ultimately failed to maintain this level and experienced a sharp decline.”
The current trend is similar to the one in 2022.
However, the analyst noted that the market cannot perfectly repeat its past, making it difficult to predict what will happen in the future.
*This is not investment advice.
