Is the Crypto Market Split Will Bitcoin Experience a Correction or a Bullish Reversal Soon
Key Points
Bitcoin is currently holding a support level but may drop to $60,000 if buyers do not maintain the current range.
Market experts have mixed opinions, with some predicting a decline and others anticipating a rise after a temporary dip.
Despite recent market fluctuations, institutional demand for Bitcoin remains strong.
Bitcoin is showing stability above its 50-day moving average amid ongoing market corrections. The cryptocurrency market is witnessing a potential reversal pattern with a weekly double top and a bearish divergence on the Relative Strength Index (RSI).
What You Should Know
There is a risk of Bitcoin’s price falling to $60,000 if buyers fail to sustain the current range. This warning comes amidst varying reactions in the market, with miners taking profits and US spot BTC ETFs experiencing net outflows. Despite these challenges, institutional interest in Bitcoin remains high, as evidenced by low exchange balances even months after the fourth halving.
While recent Federal Reserve policies have indicated lower liquidity levels in the mid-term, there has been a surge in demand for risk-averse assets. Alex Kuptsikevich, a senior market analyst at FxPro, notes a shift towards a stronger dollar and equities demand, leading to a decrease in risk asset demand and a pattern of declining intraday highs for Bitcoin.
Bearish Signals and Market Forecast
Rachel Lin, CEO of SynFutures, has observed bearish signals for both Bitcoin and Ethereum, suggesting further market declines. However, popular crypto analyst Michaël van de Poppe predicts a bullish trend as the dollar weakens against global currencies. He anticipates Bitcoin to find strong support above $60,000 if the price drops below $66,000.
Looking ahead, Poppe foresees Ethereum outperforming Bitcoin in the upcoming bullish phase. He highlights the ETH/BTC pair signaling an inevitable reversal, potentially triggering the long-awaited altseason.
In Conclusion
Bitcoin’s current stability and potential for a price drop to $60,000 are key concerns in the market. While some experts foresee a decline, others predict a bullish turn as institutional demand remains strong and the market continues to evolve. Ethereum’s expected outperformance of Bitcoin in the next bullish phase adds an interesting dynamic to the crypto landscape.