Key Points
- Bitcoin’s price may drop to $59,000, marking the lowest level since late February.
- Analysts suggest a longer timeframe for Bitcoin’s price to rechallenge its highs.
Bitcoin’s price has been on a downward trend, with a potential drop to $59,000, which would be the lowest level since late February. This comes after a decrease of up to 15% since the weekend.
Analysts Predict Bitcoin’s Price Dip
Analysts and traders are contemplating where the cryptocurrency market might reach its lowest point and how soon this could happen. After challenging $61,000, Bitcoin failed to maintain a significant rebound and is now circling $62,000 as of April 16. Analyst Mark Cullen suggests that a new attack on the $60,000 resistance is imminent.
According to the Elliott Wave method used by Cullen, a final downward movement could occur soon, taking Bitcoin’s price to around $59,000. Cullen believes this could complete the Wave C of the larger flat corrective formation. This would put Bitcoin’s price action at its lowest level since late February and represent the largest drawdown versus recent all-time highs to date — around 20%.
Bitcoin’s Future Price
Other analysts, like Matthew Hyland, are looking at the upcoming weekly close for insights into the current pullback’s staying power. Hyland notes that Bitcoin has lost the support of its 10-week simple moving average (SMA), which currently lies at $64,130. The last time Bitcoin tested this level, it proved to be a great buying opportunity and never closed below it.
Binh Dang, a contributor to on-chain analytics platform CryptoQuant, suggests that longer timeframes could yield frustrating conditions for Bitcoin bulls. He predicts that Bitcoin could stay lower for longer before rechallenging its highs. Dang uses the Adjusted Cumulative Value Days Destroyed (CVDD) metric, which measures the number of days a coin has been in its wallet when it moves on chain and multiplies this by the current price.
While history shows that deeper corrections can occur, Dang does not expect the current geopolitical impetus for the downward movement to reach the levels of panic seen during the COVID-19 cross-market crash in March 2020. A drop to just under $40,000 now constitutes the “worst case” according to Dang’s chart.
