Amidst heightened discussions surrounding Bitcoin and Ethereum, traders find themselves at a crossroads as fear grips the cryptocurrency market. Santiment’s data reveals a stark contrast, with Bitcoin and Ethereum dominating the discourse, leaving other assets in their digital dust.
Bitcoin fell to $59.5K, and Ethereum dropped to $2.9K today, causing concern among traders who fear that it could be a sign of worse things to come. But out of this chaos comes an opportunity for some contrarian traders who see this price dip as a golden chance to buy low. And already, we’re seeing some small relief bounces, which could bring hope in times like these.
Bitcoin’s Fate Hangs at $57,500: Analysts Warn Price Volatility
Mags, an analyst, says if Bitcoin drops below $57,500, then he believes Bitcoin’s fate hangs there. He goes on to say there is even grimmer news if you look at weekly charts because it show BTC crashing through its critical weekly support zone of $60k, which isn’t good for anyone involved. There are whispers within communities predicting prices down at scary levels like 50k, but only time will tell if those fears become reality.
However, Mags cautions against jumping too quickly given how fragile things are looking right now with where Bitcoin is headed next. If the aforementioned support zone fails, then what could happen is called a “fakeout,” where price action above 60k unravels leading into cascading effects that cause prices to drop even further from current levels – potentially all the way down towards 40k or beyond.
Drawing from past cycles, Mags points out four previous pullbacks ranging between 20-22% and states that based on historical data, a -22% correction from the local high would take us back down towards the $58-$57 level (range). But within worst cases, there can always be silver linings found when looking at things optimistically especially if bullish.
So here’s another scenario, according to Mags: What if this fakeout ends at $57,500 and then bounces back up quickly enough to save face on the bulls’ part? But still, Bitcoin’s bull run could come crashing down with one false move. A weekly close below that critical level might just lead us into months of going nowhere price-wise which will keep people pessimistic about cryptos until sometime later during the fourth quarter when recovery may finally happen.
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