Analyst Warns of Bitcoin Breakdown Below Key Psychological Level, Says $40,000 Possible

Bitcoin is at a crossroads after being rejected at $62,000. Unsurprisingly, this has led to a conflict of emotions in the market, with bulls and bears fighting each other. But while the bulls are still talking, the bears are out of the woods, leading to speculation that the price may actually be falling significantly.

Bitcoin to Defeat Stress

Despite the 15% crash that has already rocked Bitcoin’s price, crypto analyst DonAlt doesn’t believe the market has seen the worst yet. In a YouTube video, the analyst explains that even the best case scenario for Bitcoin is still lower than its current price of $61,000.

Related Reading

DonAlt presents the argument that the price of Bitcoin may fall below $60,000, which means that it has lost an important psychological level. This time, the downtrend will continue, predicting another double-digit decline in the price of the cryptocurrency.

If this happens, the crypto analyst expects the downtrend to be as deep as 30%. Not only that, he expects a sideways movement to follow, predicting that this sideways movement could last as long as 120 days, or four months to be exact.

As for the goals, the analyst believes that this can send a value of less than $ 50,000. However, in the worst case scenario, you see the price drop to $40,000, but not below. In the best case scenario, you see a drop to $52,000 before the price starts to stabilize.

“I think the worst is $40,000, that’s the limit I think. I don’t think it will go down. And the best case if all of this is bearish I think it would be $52,000 and then like on the sides [price action],” he said in the video.

BTC Crash Erodes Market Sentiment

The fall in the price of Bitcoin brought down the entire market and this caused a huge drop in investor sentiment. According to the Crypto Fear & Greed Index, investors have returned to fear, which is ultimately negative for the price in the short term.

Related Reading

The index currently sits at a neutral 47 after dropping to a fearsome 40 on Thursday. Although today’s price has increased, it still shows uncertainty among investors. So, sideways movement should be expected from Bitcoin, at least for the weekend.

At the time of writing, the price of Bitcoin has fallen again below $61,400, erasing the gains caused by the announcement that VanEck filed Solana ETFs with the SEC.

The featured image was created with Dall.E, a chart from Tradingview.com