While the decline in Bitcoin and altcoins turned the markets upside down, the value of the cryptocurrency market fell by 13%, its biggest decline since January 2022.
According to CoinGecko data cited by The Block, the total cryptocurrency market decreased by 13% in the last 24 hours, reaching 1.94 trillion dollars. This marked the largest single-day decline since January 2022, while the Bitcoin futures funding rate turned negative in the last 24 hours.
This shows that investors are turning to short positions and betting that the BTC price will fall.
Bitcoin (BTC) May Drop to $42,000!
As the interest in short positions in Bitcoin increases, the expectation of decline also increases. At this point, FxPro senior market analyst Alex Kuptsikevich also said that BTC is in a critical situation.
Warning that Bitcoin has fallen below the 50-week moving average of $50,500, Alex Kuptsikevich stated that if a significant purchasing interest does not emerge at this level, a strong sell-off may occur and the price may fall to $42,000.
“Bitcoin fell below the 50-week moving average of $ 50,500. If a strong purchase does not occur at this level, there may be a strong sell-off in Bitcoin similar to the end of 2021 and the beginning of 2022.
This sell-off could potentially drop BTC to $42,000.”
Apart from the FxPro analyst, another anonymous analyst known by the pseudonym The Moon also argued that, according to the BTC/USDT chart, BTC should regain the lower support line of the descending channel that it has maintained since March. According to the analyst, if BTC cannot rise above the $51,000 support level, it could drop to $45,000.
Bitcoin continues to trade at $50,600 at the time of writing.
*This is not investment advice.