Despite a month of bearish forces dominating the Bitcoin market and causing a 22% price decline, many analysts remain optimistic that BTC has reached its bottom.
Over the past day, the crypto market has experienced a bloodbath, with Bitcoin being pushed back to the $50K range. This price level was last seen two months ago before Bitcoin reached its all-time high of $73,750 in March.
Bitcoin hit an intra-day low of $56,555, dropping around 9% from the $60K range. This further decline in the past 24 hours has also impacted the altcoin market, with assets like Dogecoin (DOGE) and Toncoin (TON) experiencing double-digit percentage losses.
The ongoing downward trend in the Bitcoin market has lasted for nearly five weeks, resulting in a 22.35% decrease from its all-time high. However, prominent analysts in the crypto space believe that Bitcoin’s price won’t crash significantly further.
Rekt Capital, in an updated Bitcoin analysis, pointed out that the drop to the $56K threshold represents the most significant decline witnessed in this cycle. The analyst presented a chart showing that after similar 20% declines in the past, there has typically been a sustained relief rally to higher price levels.
Renowned analyst Michaël van de Poppe shared a similar sentiment, suggesting that Bitcoin has reached the final stage of price consolidation. While he acknowledged the possibility of further retracement, he highlighted the $56K to $58K price range as a crucial observation zone. He also speculated that the altcoin market would recover before Bitcoin.
Crypto statistician Sergio Tesla also expressed bullish sentiments, similar to Van de Poppe and Rekt Capital. Interestingly, Tesla had previously predicted Bitcoin’s crash to the $56K range during its rally to the all-time high in March. He believes that $56K is the bottom for Bitcoin before it takes off significantly, expecting the asset to rally back to the unprecedented $80K range faster than it dropped to $56K.
Currently, Bitcoin is trading at $57,495, showing a modest gain of $1,000 after the recent drop.
Disclaimer: This article provides information and should not be considered financial advice. The opinions expressed in this article are the author’s own and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.