Bitcoin Price Prediction: Fund Manager Warns of Possible May 2021-Style Crash
Fund manager Andrew Kang recently warned that Bitcoin could repeat its May 2021 crash. Kang noted that the market is vulnerable due to an extended trading range and high leverage. If Bitcoin falls below the four-month range, the price could drop to around $40,000.
Recently, the price of Bitcoin fell below $54,000 as Mt. Gox transferred $2.7 billion worth of BTC. The transfer was part of the $9 billion repayment preparation that began in July and caused market panic.
In the past week, Bitcoin fell nearly 12%, with 7.5% of the decline occurring in the past 24 hours. Ethereum fell below $3,000 and Binance Coin traded at around $470. A weaker U.S. dollar provided support to the cryptocurrency market as the market expected the Federal Reserve to cut interest rates in September and December.
Traders are focused on the upcoming U.S. non-farm payrolls report, which will influence the Fed's interest rate decision. Analysts predict that the U.S. will add 190,000 new jobs in June, down from 272,000 in May. The unemployment rate is expected to remain stable at 4%, but the annual growth rate of average hourly wages may fall from 4.1% to 3.9%.
Bitcoin is currently trading at $53,980, down 4.62%. On the 4-hour chart, the pivot point is at $55,180, and resistance levels are $57,090, $58,510, and $60,220.
Support levels are at $53,140, $51,720, and $49,910.
The relative strength index (RSI) is 17, indicating extreme oversold.
The 50-day exponential moving average (EMA) is $60,510, and the trend remains bearish as long as the price remains below the pivot point.
A break above $55,180 could signal a shift in bullish momentum.
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