Analysts looking only at price charts say Bitcoin's decline could get worse before it gets better. The main cryptocurrency has recorded negative growth for the first time in eight years, making it the worst month since November 2022. The downward trend intensified on Wednesday, falling below the $60,000 level for the first time since February, as stubborn inflation and uncertainty over the Federal Reserve's interest rate policy kept the market unmoved. Under pressure. According to Oppenheimer analyst Ari Wald, this is an important support level for Bitcoin and represents the approximate convergence of the March low and the 100-day moving average. This is also a 38.2% retracement of the January-March rally that saw Bitcoin rise more than 66%, said David Keller, chief market strategist at StockCharts.com, referring to stochastic momentum indicators. Stated. While the long-term uptrend still remains, Wednesday's breakout of support confirms a short-term high and could push Bitcoin further down below $50,000, Wald said. BTC.CM= 1D Mountain Bitcoin breaks through key $60,000 support level “We're seeing countertrend risk,” he told CNBC. “If we see some signs of stabilization here, it could set the stage for the next heights over the next few months and quarters, and we could definitely break through all-time highs,” Keller said in the first quarter. He said he sees downside risk at $50,000-$52,000 based on both the 61.8% retracement of the stock's upside and the 200-day moving average. Jeff Kendrick, head of digital asset research at Standard Chartered, expressed a similar view, saying that Bitcoin's “decent break” above $60,000 “could put it on the path to the $50,000 to $52,000 range.” has opened again.” Rob Ginsberg of Wolf Research said $60,000 of Bitcoin looks “vulnerable” and $50,000 could be affected. Bitcoin has been trading in a range of $60,000 to $74,000 since hitting a new record in mid-March, failing to break out multiple times. Now that key triggers such as the introduction of Bitcoin ETFs in the US and the halving have passed, investors were expecting trading to be volatile in the coming weeks. “Ahead of the latest Bitcoin halving, Bitcoin is often sold off in the month following the halving, but it is noteworthy that the 12 months following the halving saw the most bullish rally in history. You deserve it,” Keller said. “We expect short-term weakness here to precede a strong move to new all-time highs in late 2024.” —CNBC's Michael Bloom contributed reporting.
