Yesterday Bitcoin took a nosedive, falling below $60,000 per bitcoin and touching other major cryptocurrencies, including ethereum, solana, and XRP.
The bitcoin price fell to $58,402, its lowest since early May and down more than 10% from its recent high. Meanwhile, the prices of other top 10 coins ethereum, XRP and solana fell even more sharply – wiping more than $250 billion off the aggregate market in the past week.
Now, traders are turning to a “key level” that, if breached, could send bitcoin prices much lower than they are now even as the market braces for a major political earthquake this week.
“The key level to watch is $61,500,” Markus Thielen, a bitcoin and cryptocurrency price analyst at 10X Research, wrote in a note to clients asking whether it was time to “panic”?
“If bitcoin trades below this level, the price could drop to the low $50,000s — if not lower. Technically, bitcoin appears to be in a double top pattern, while support is being tested. This chart formation should be our base case unless it becomes invalidated. This formation could easily see a drop to $50,000 — if not $45,000.”
Bitcoin and cryptocurrency markets have surged this year as traders bet on a dovish shift from the Federal Reserve as inflation as measured by consumer price index (CPI) data eases back along with a political shift in Washington that could mean a much friendlier attitude toward cryptocurrencies from U.S. regulators.
“Yes, the US election and CPI will increase later this year, but we could still have a stronger correction,” Thielen added.
Bitcoin prices have also skyrocketed this year — boosting the prices of ethereum, solana, XRP and the broader market — thanks to the long-awaited arrival of a group of bitcoin spot exchange-traded funds (ETFs) on Wall Street.
I have predicted that the possibility of BTC returning to below 50K is normal, so you guys should prepare mentally, those who have USD should keep waiting to enter the line, those who are holding Coin should stay still...! This is not the time to act rashly, from now until the end of July there will be many more shocks for you guys :D
