A crypto analyst is warning that Bitcoin could take a serious dive if it doesn’t hold its ground at a key price level.
A Crucial Support Level
The analyst, known as DonAlt, says Bitcoin needs to stay above $63,000. If it falls below that, things could get ugly.
DonAlt explains that Bitcoin recently bounced back above $60,000, which was seen as a positive sign. However, it hasn’t been able to maintain that momentum and is now facing resistance.
A Bearish Outlook
If Bitcoin fails to hold the $63,000 level, DonAlt predicts a drop to around $52,000 or even $42,000. He believes these lower prices could become new support levels.
Bitcoin’s Current Situation
Right now, Bitcoin is trading above the $63,000 support level. However, it has been on a downward trend recently, losing 4.44% in the past week.
Bullish Bets Backfire
Another analyst, Ali Martinez, points out that many investors who bet on Bitcoin’s continued rise have suffered losses as the price has dipped. Over $2.5 billion in leveraged long positions were liquidated when Bitcoin fell below $63,000.
Martinez also notes that investors who are now betting on Bitcoin’s decline might be getting overconfident. If Bitcoin recovers to $70,440, it could trigger the liquidation of almost $2.4 billion in leveraged short positions.
The Bottom Line
The crypto market is volatile, and analysts are watching Bitcoin closely. The $63,000 support level is a crucial point, and if it breaks, Bitcoin could experience a significant drop.
