Renowned crypto analyst and FX Pro trader, Alex Kuptsikevich, has warned that Bitcoin could witness a massive panic sell-off if it drops below the $60,000 level in the coming days.
According to market sentiments, Crypto traders are targeting a break of above $65,000 before the market can be deemed bullish.
According to CoinDesk, Bitcoin briefly surged to $63,000 on Monday morning together with other Altcoins like Ether, Solana, Dogecoin surging 3% following the rise in Bitcoin price.
Ton the native token of the Tonchain blockchain ecosystem that is related to Telegram led the price surge by rising 7% on Monday morning.
Bitcoin since March has floated between $60,000 and $70,000. The underwhelming effect of the highly anticipated halving event on Bitcoin Price together with a reduced inflow from Exchange Traded Funds has contributed to an overall bearish market sentiment.
Alex Kuptsikevich explained in a note to Coin Desk that price action has been characterized by a sequence of lower lows and lower highs, marking a sign of investors selling into strength on price rallies.
“There is pressure likely related to asset sell-offs by miners and fears of tighter regulation of cryptocurrencies,” Kuptsikevich said, referring to the drop in mining difficulty after April’s halving.
“A failure below $60K could trigger something of a panic sell-off. The positive scenario, in our opinion, will become the main one with a rise above $65K, fixing the price at the 50-day moving average and the reversal area in early May,” he added.
In addition to this, difficulty in mathematical puzzles for miners and an increase in resources needed to perform them have made the business model for mining crypto unattractive and unprofitable, leading to fewer miners.
Besides, the warning by crypto analyst, Alex Kuptsikevich, analysts at crypto investment firm Ryze Labs have made a case for the coming influence of short-term bitcoin holders in the general markets.
They stated that the behaviour of short-term Bitcoin holders or those who hold the coin for less than 155 days could largely influence markets in the coming months.
An Analyst at Ryze Labs explained that there have been only three instances in which 94% of short-term holders of Bitcoin and long-term holders were in profits. They were from mid-November 2017 to mid-April 2017, mid-February to mid-April 2021, and most recently, from the end of February 2024 to the beginning of April.
The highest value of Bitcoin held by short-term investors was $117.8 billion in 2017 and $289.9 billion in 2021. During these times, long-term holders and miners sold Bitcoin to short-term holders, who held it for less than 155 days.
However, after these peak prices, short-term holders incurred various losses leading to them selling back bitcoin to long-term holders. The analyst team at Ryze Labs has noted that this shift has often led to significant bitcoin price falls within four to six months.
Finally, the Analyst added that this cycle might not lead to a Bitcoin Price drop today due to institutional demand supported by improving macroeconomic conditions.
However, if these factors wane, the Bitcoin Price drop similar to past cycles will happen…. CONTINUE READING
