๐ฅ๐ฅ๐ฅ Bitcoin has recently plunged to $53,600 on Coinbase, marking its lowest point since February and raising concerns among analysts about further declines. The drop is attributed partly to the imminent release of $8 billion worth of Bitcoin from Mt. Gox creditor repayments, which has fueled selling pressure.
Analysts like Josh Gilbert from eToro anticipate more negative price movements, foreseeing potential tests of the $50,000 level soon. He suggests that short-term weakness may persist until a significant market catalyst, such as a resurgence in "buying the dip" sentiment or approval of an Ethereum ETF, bolsters investor confidence.
Pav Hundal of Swyftx shares similar sentiments, highlighting $52,000 as a critical support level and warning of possible dips to $50,000 or lower in the near term. Despite short-term challenges, analysts remain optimistic about long-term macroeconomic conditions, including potential Federal Reserve interest rate cuts later this year and the prospect of an Ethereum ETF approval by the SEC in July, which could positively impact the broader crypto market.
While the current market sentiment leans bearish, upcoming catalysts have the potential to shift the trend positively. Investors are advised to stay informed and agile amidst these volatile market conditions.
Source: cointelegraph.com
