In a recent price evaluation, a crypto analyst has highlighted a crucial support level for Bitcoin (BTC), emphasizing the likelihood for the pioneer cryptocurrency to plummet significantly to recent lows if it fails to keep up certain key levels.
Bitcoin Risks Crash To $42,000
On August 1, the pseudonymous crypto analyst DonAlt shared an in-depth price evaluation and future outlook of Bitcoin on the TechnicalRoundup YouTube channel. In accordance with the analyst Bitcoin could experience a potential price crash to $42,000 if it fails to carry the critical support level at $63,000.
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Based on Bitcoin’s recent price actions and present market conditions, the cryptocurrency is seen to be facing a vital support level on the $63,000 price mark. In accordance with DonAlt, Bitcoin previously reclaimed the $60,000 level, after experiencing a period of volatility and consistent declines.
The crypto analyst revealed that the $60,000 price mark was seen as a bullish sign, possibly hinting at further upsides. Nonetheless, despite the value leap, Bitcoin is now facing a rejection and has been unable to proceed its expected upward momentum.
During his evaluation, DonAlt indicated that if Bitcoin’s price successfully stays above the $63,000 critical support level, a future bullish scenario stays valid. Then again, if the cryptocurrency falls below this key level, its price outlook potentially becomes way more concerning and bearish.
DonAlt foresees Bitcoin crashing around $52,000 and $42,000 if it cannot maintain its price near the $63,000 mark. He further indicated that the cryptocurrency might test these cheaper price levels as potential recent support zones.
Looking ahead, the crypto analyst has stressed the importance of watching Bitcoin’s behavior and market movements on the $63,000 price mark, underscoring the importance of this critical support level to avoid further downward pressure for the cryptocurrency. Based on CoinMarketCap’s reports, Bitcoin’s price is trading significantly above the $63,000 support level.
On the time of writing, Bitcoin’s price is trading at $64,104. Despite declining by 4.44% over the past week, the cryptocurrency stays on an upward trajectory, steadily approaching the $70,000 threshold.
BTC Bulls Take A Hit As Bearish Sentiment Rise
Popular crypto analyst, Ali Martinez revealed in an X (formerly Twitter) post on August 1, that quite a few investors who had bet big on Bitcoin’s price surge had experienced substantial losses throughout the recent downturn. In accordance with data from Coinglass, over $2.5 billion in leveraged long positions were liquidated when Bitcoin fell below the $63,000 mark.
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Source: X
Martinez revealed that investors who’re presently betting on Bitcoin’s potential to say no have gotten overconfident. Moreover, the analyst revealed that if Bitcoin’s price recovers to $70,440, it could lead to the liquidation of virtually $2.4 billion in leveraged short positions.
Bitcoin price trending downward on the every day chart | Source: BTCUSDT via Binance, TradingView
Featured image created with Dall.E, chart from Tradingview.com