Is Bitcoin about to plummet? Experts predict: The fourth quarter may trigger a major market shock, and the price may fall below $45,000!
Will Bitcoin plummet? What is the time window for a possible plummet? And what is the possible target price for the decline?
Currently, Bitcoin is near a key support level (around $58,000). Although the bulls have successfully defended this support many times in the short term, the support will gradually weaken with each test.
The price of Bitcoin has formed a relatively obvious downward channel on the daily chart. The price continues to test the support level but fails to form an effective rebound. Technical indicators such as MACD and RSI all show that the market is weak.
But what really triggered the plunge was the "black swan" event in the market. Be alert to the following factors that may trigger a plunge in Bitcoin:
1. Sudden deterioration of the global macroeconomy: If global economic data suddenly deteriorates, especially if the US economic data is lower than expected, it may cause investors to sell risky assets on a large scale, including Bitcoin.
2. Sudden changes in regulatory policies: The regulatory policies of various governments on cryptocurrencies have always been a key factor affecting market sentiment. If a country suddenly introduces strict regulatory measures, it may trigger panic selling in the market.
3. Market liquidity is exhausted: The liquidity of the Bitcoin market is relatively limited. Once a large-scale sell-off occurs, the market may quickly fall into a liquidity crisis, resulting in a sharp drop in prices.
Bitcoin's possible plunge time window
1. The market may usher in a critical moment after the Federal Reserve's September meeting. If the Fed's policy statement is not as expected by the market, the price of Bitcoin may plummet in the following period.
2. The end of the year is usually the time for investors to adjust their portfolios. If Bitcoin's performance in the fourth quarter is still weak, it is not ruled out that some institutional investors will choose to sell Bitcoin to lock in profits or reduce losses. The fourth quarter, especially November and December, may be a high-risk window for Bitcoin to plummet.
In extreme cases, Bitcoin may even fall below $48,000 and seek support at $45,000 or even lower.
These potential support levels are opportunities to buy on dips.
