Although Bitcoin has reclaimed the $56,000 price level up to now few hours, its sudden drop below $54,000 on July 5 has reminded investors of the intense volatility related to the market. Within the larger timeframe, Bitcoin has been down by 7% and 20.25% up to now seven and thirty days, respectively.
While many crypto traders and analysts are still within the spirit of a bullish cycle in the long run, the sudden price drop wasn’t surprising to some. Notably, crypto trader @TheFlowHorse revealed that the drop to $53,000 resonated along with his goal of $52,000. Similarly, Ki Young Ju, CEO of CryptoQuant, noted the potential for Bitcoin dropping to $47,000.
Bitcoin Could Crash To $47,000
In keeping with Ki Young Ju, Bitcoin is still in a bull market within the larger timeframe, which can proceed until early 2025. This school of thought resonates with many other price outlooks for Bitcoin, especially in the long run. Despite this bullish projection, market participants are currently fighting short-term bearish conditions.
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As Ki Young Ju noted, this uncertainty opens up the potential for the world’s leading digital currency plummeting to a chilling $47,000 before finding its footing again. With the crypto market in a protracted slump for the reason that starting of June, this bearish case scenario seems increasingly plausible. Bitcoin, particularly, has shed billions in value, and investor confidence is wavering.
$112K at the height of the cycle.https://t.co/beKpUVkNXL pic.twitter.com/Esj02BYms4
— Ki Young Ju (@ki_young_ju) July 5, 2024
Young Ju admonishes traders to not open high-leverage long or short positions based on his long-term bullish projections as a result of the prevailing uncertainty. When asked what his long-term price goal for Bitcoin was, he noted an increase to $112,000 at the height of the cycle. This prediction is predicated on the BTC realized market cap since July 2010.
Source: X
Bearish Case For Bitcoin
On the time of writing, Bitcoin is trading at $56,520 and has rebounded by 4.67% since its recent fall below $54,000. Nonetheless, despite this price recovery, the crypto faces a big risk of falling further amid whale selloffs, which have amounted to over $1.7 billion in BTC up to now 30 days. Defunct crypto exchange Mt. Gox can be beginning to repay its creditors in BTC after 10 years of inactivity. That is anticipated to unleash a $2.71 billion supply of Bitcoin onto the market, perhaps intensifying selling pressure.
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A reversal to the downside is just not out of the books yet. If Bitcoin were to fall to $47,000, it will represent a 16% decline from the present price level. Market participants proceed to await how Bitcoin’s price motion plays out in July, which has historically been a positive month.
BTC price recovers from crash | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com