- Bitcoin struggled to maintain the $65,000 level amid the market volatility.
- Analysts offered conflicting opinions on whether Bitcoin has bottomed out.
Despite Bitcoin [BTC] Continuing attempts to stabilize the price above the $64,000 threshold, the leading cryptocurrency has recently recorded a decline.
The price fell by about 0.6% over the past 24 hours to a current valuation of $65,619.
This ongoing downward trend, which has seen Bitcoin lose nearly 5% over the past two weeks, has investors and traders alike concerned.
What do the experts say?
Amid these swings, notable crypto analysts with varying perspectives are weighing in.
CrediBULL Crypto, a renowned figure in the digital currency space, shared a cautiously optimistic take on X (formerly Twitter), suggesting Bitcoin may have bottomed out. He elaborated,
“There’s a chance our $BTC bottom is in with this SFP…Yes, technically we can still go lower…but I wouldn’t be surprised if that zone leads the way.”
He urged caution and emphasized the need for a clear bullish signal or “impulse” before making major trading decisions.
Source: CrediBULL Crypto/X
Conversely, Skew, another respected trader, has marked recent activity on the major stock exchanges as indicative of market sentiment.
He pointed out that while Binance saw some buying on Coinbase and Bitfinex, it continued to experience selling pressure. He noticed,
“I think $66,000 – $67,000 is the key area to gauge whether there is continued absorption, otherwise lower prices will be accompanied by price bleeding.”
He also said the presence of spot premiums and low financing rates could be a positive sign, pointing to potential for a market recovery.
Fundamental view of Bitcoin
This period of uncertainty is reflected in the significant liquidations taking place within the Bitcoin market.
Facts from Coinglass revealed that approximately 173,662 traders were liquidated in the last 24 hours alone, leading to a total of $456.43 million in liquidations, with Bitcoin traders accounting for $70.24 million of this amount.
Source: Coinglass
Despite these challenges, there has been a silver lining in the form of increased new user activity on the Bitcoin network.
AMBCrypto’s analysis of Glassnode’s facts showed an increase in the number of new Bitcoin addresses, from less than 550,000 in April to more than 700,000 at the time of writing.
Source: Glassnode
This increase in the number of new addresses could indicate growing interest from newcomers or a return of dormant users, potentially stabilizing the market and promoting a recovery phase.
To complement the cautiously optimistic outlook, AMBCrypto offers cited CryptoQuant analyst Ki Young Ju, who remained optimistic about Bitcoin’s long-term prospects.
Read Bitcoin’s [BTC] Price forecast 2024-25
He believed the average entry price for Bitcoin traders remained around $47,000, indicating most are still making profits despite the recent pullback from peak prices.
This resilience among Bitcoin holders, coupled with the potential accumulation at lower price levels, could set the stage for a future rally, underscoring the complex dynamics in the cryptocurrency market.