Crypto analyst DonAlt has outlined a scenario where the Bitcoin price could fall to the mid-$40,000s. He further suggests that this price breakdown could be necessary for the continuation of BTC’s bull run.
How Bitcoin Could Fall to $47,000
In a update Following its Bitcoin analysis, DonAlt noted that Bitcoin had fallen back to around the $60,000 price range and could eventually break through that support if further tested. From the accompanying chart he shared, the crypto analyst hinted that a price breakout below the $60,000 range Bitcoin would drop to $52,000 or even further to $47,000.
Source: X
Meanwhile, he added that this could be something that even the bulls want, so there could be a washout below $60,000, which would shake off weak hands. DonAlt also appears to be supporting a price breakout below the support area, as he shared his belief that it is currently present complacency on the market.
This is the time when crypto investors are ignoring the risks of Bitcoin as they have seen price increases over an extended period of time. DonAlt said he would continue with this complacency until proven otherwise. For that to happen, he noted that Bitcoin would have to Recover $68,000 or drop below $60,000 and reclaim that support level.
Also Denis Baca, head of product at Zivoe Finance recently proposed that BTC could fall below $60,000 before making a parabolic move. This was a huge opportunity, especially as Baca noted that the flagship crypto historically retests the support level of the 20-week SMA (small moving average) in May. He claimed that this could cause Bitcoin to fall to $56,000.
BTC bulls are overwhelmed by the bears
Bitcoin bulls appear to be buckling under the pressure of the bears. Crypto analyst Ali Martinez revealed in a X message that there is a ‘noticeable dip in Bitcoin whale activity” since March 14. This suggests that the current market downtrend could be eroding their confidence, as these whales are doing they are always known to accumulate more during every price dip. Martinez added that a “surge of whale transactions could be the spark needed to push the price of BTC higher.”
In the meantime, CryptoQuant’s Head of Research Julio Moreno recently noted that Bitcoin’s price has remained tepid due to the slowdown in demand. He alluded to the Discover Bitcoin ETFswho have seen them decrease in demand this month. As Martinez mentioned, Moreno stated that there needs to be “demand growth” before Bitcoin can see another rally.
At the time of writing, Bitcoin is trading around $62,300, down more than 2% in the past 24 hours. facts from CoinMarketCap.
BTC price trending at $62,200 | Source: BTCUSD on Tradingview.com
Featured image of Xataka, chart from Tradingview.com
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