As the debate over Bitcoin and Ethereum mounts, fear reigns in the crypto market and traders are at a crossroads. Santimento data It reveals a stark contrast, with Bitcoin and Ethereum dominating the discussion while other assets are left in the digital dust.
Today, Bitcoin fell to $59,000 and Ethereum to $29,000, sparking concern among traders who fear it's a sign of worse things to come. But out of the chaos comes opportunity for some contrarian traders who see this drop in prices as a golden opportunity to buy low. And already we are seeing some small relief measures that may offer hope in times like these.
Bitcoin's fate approaches $57,500: analysts warn of price volatility
Mags, Analystsays he believes Bitcoin's fate depends on it if it falls below $57,500. He went on to say that there is even more grim news when looking at the weekly chart, which shows BTC breaking above the key weekly support zone of $60,000, which is a sign for everyone involved. That's not a good thing, he said. There are whispers within the community that the price could drop to scary levels like $50,000, but only time will tell if those fears become reality.
But Maggs cautions against jumping in too quickly given where Bitcoin goes next and how fragile things are at the moment. If the aforementioned support zone fails, what can happen is something called a “fakeout”, where the price action above 60,000 unravels, creating a cascading effect that causes the price to fall further from current levels, and possibly It could drop to over 40,000.
Maggs points to four previous declines in the 20-22% range from past cycles, and based on historical data, a -22% correction from the local high would bring the $58-$57 level. states that it will retreat towards (range). But even in the worst of situations, there can always be a silver lining if you look at things optimistically, especially if you're bullish.
Another scenario is possible, Maggs said. What if this sham ends at his $57,500 mark and then rebounds fast enough to save face for the bulls, but still, the Bitcoin bull market collapses with just one false move? there is a possibility. If the weekly closing price falls below that critical level, we could enter a few months where nothing is going on price-wise, and people will continue to lose interest in cryptocurrencies until sometime in the fourth quarter when there is a chance of an eventual recovery. will remain pessimistic.
Related reading | Ethereum bullish momentum hits hurdle: Analyst points to crisis level
