A crypto analyst has disclosed the reason why the worth of Bitcoin could witness more declines to $52,000 lows. Based on the analyst, Bitcoin has broken key support levels, which indicates a possible shift from a bullish to a bearish position.
Analyst Projects Bitcoin Crash To $52,000
In a post on X (formerly Twitter) on June 21, crypto analyst, Justin Bennett predicted that Bitcoin could witness a price crash to key ranges between $52,000 and $54,000. He shared a price chart illustrating Bitcoin’s recent decline, highlighting that its price stays range-bound, showing no clear downward or upward trend because it trades between support and resistance.
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Source: X
While Bennett believes that Bitcoin could plummet to $52,000, the analyst cited several reasons for this bearish outlook. He revealed that Bitcoin has broken past a key trend line from October 2023, suggesting a shift to more bearish territory. Moreover, the analyst noted market imbalances between February 26 and 27, indicating the potential of less accumulation and more selling pressure for Bitcoin.
Bennett also highlighted the presence of significant liquidity below the $56,500 price threshold for BTC. He suggested that markets often move towards areas with higher liquidity as a consequence of the concentration of shopping for and selling of Bitcoin. Because of this, the potential for Bitcoin to drop below $60,000 is bigger.
On the upside, Bennett has disclosed the chance for Bitcoin to have a bullish turnaround above $72,000, potentially capturing liquidity at these levels. Nonetheless, the analyst also considers this a less likely scenario given the present state of the Bitcoin chart.
“I’ve been a supporter of crypto since I got involved in 2020, but facts are facts. The charts don’t look great, and the stock market is the one thing keeping crypto from falling off a cliff,” Bennett stated.
Investor Interest In BTC Is Waning
In one in all his latest X posts, crypto analyst, Ali Martinez disclosed that investors’ interest in Bitcoin has begun to diminish. Based on the analyst, BTC is experiencing a big downturn in exchange-related on-chain activities. Moreover, the pioneer cryptocurrency is presently witnessing a considerable drop in its network usage, suggesting a shift in demand for Bitcoin.
Source: X
Martinez has suggested that the crypto market could also be turning their attention to Ethereum, the world’s largest altcoin. He disclosed that the “crowd was growing more optimistic about Ethereum,” highlighted by the surge within the cryptocurrency’s social media mentions.
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This variation in investor sentiment may very well be attributed to the approaching launch of Ethereum Spot ETFs, which is anticipated to draw significant inflows into Ethereum’s market and potentially drive up the cryptocurrency’s price. Martinez also shares similar sentiments with crypto analyst Bennett, predicting a possible price correction for Bitcoin toward recent lows at $54,930.
On the time of writing, the worth of Bitcoin is trading at $64,265, reflecting a 2.87% decline over the past week, in accordance with CoinMarketCap.
BTC bulls reclaim control of price | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com