50% Bitcoin Price Crash On The Horizon? Analyst Reveals $60,000 Target
Despite the Bitcoin price holding up quite nicely above $100,000 and remaining very close to its all-time high levels, there continues to be expectations of a massive crash that would rock the market. Pseudonymous crypto analyst FriendlyRox points to a number of indicators for this, going from . What is the expected result of this? Losing the $100,000 psychological level and then falling to previous peaks.
Bitcoin Price At Risk With Dwindling Volume And Momentum
In the analysis, FriendlyRox the decline in major metrics such as momentum and volume as the major driver of the forecasted price crash. This comes amid , such as institutions increasing their Bitcoin holdings and supply on exchanges falling toward new lows, meaning investors are choosing to hold for higher prices.
The decline in the volume has been apparent after the Bitcoin price had in June. So far, in the month of July, the Bitcoin trading volumes have trended lower, with data from Coinglass showing consistent daily volumes below $100 billion. At the same time, there has also been a decline in momentum, with the analyst pointing out a negative divergence in this metric.
Furthermore, the Bitcoin price has also flashed a historical trend that has usually predated market tops. This is price reaching the 50 EMA (Exponential Moving Average) and then retracing. FriendlyRox revealed that in the past, whenever the and then extended back, it usually signalled a crash, and the Bitcoin price has done this now, extending even further.
Other metrics that have also flashed bearishness include the RSI and the MACD, both of which are now showing a loss of momentum as they moved into the negative. All of these factors happening together at the same time have painted a pretty bleak picture for the leading cryptocurrency by market cap.
BTC Bottom Targets
With the lineup of bearish developments, the crypto analyst has predicted an approximately 50% from here. As volume continues to decrease and momentum slides into the negative, they expect that the Bitcoin price will be looking to retrace back to the 50 EMA.
The interesting fact here is that the 50 EMA falls below the , putting it at $60,000. A crash of this magnitude would only be rivaled by the COVID crash in 2020 and the FTX-induced market crash back in 2022. But nevertheless, it would mean a wipeout for altcoins across the board.
As for the timeframe for when this could happen, there is no definite timeline. Going by the analyst’s chart, it could take a couple of years for this to completely play out, with the analyst closing with: “Let us see how it unfolds.”
