Bitcoin is ‘highly unlikely’ to see the $50,000 price level again, says the analyst
Bitcoin (BTC)'s frequency of reaching higher support price levels, as well as the “lack of an immediate bubble” in emerging markets, suggest that the price is unlikely to return to $50,000 anytime soon, according to a crypto analyst.
Dylan LeClaire, senior analyst at digital asset fund UTXO Management, explained in an April 7 analyst note that a return to the $70,000-$75,000 price range would put more pressure on short positions.
“As we consolidate, short liquidity is building up to 70-75k,” he said.
If the price of Bitcoin rises to $70,000, approximately $174.17 million will be released, according to CoinGlass data.
If LeClair hits $75,000 and reaches the upper boundary of the range, short positions will pay off about $830 million.
This translates to an increase of about 7.8% compared to Bitcoin's current price of $69,344. Similarly, a similar percentage change of 7.5%, but downward movement, occurred on March 15, resulting in $525.2 million in liquidity.
LeClair noted that although a drop in Bitcoin's price to $50,000 – equivalent to a 27% decline – could result in significant liquidation of long positions, he did not take into account recent price movements and rising support levels.
“With large long clusters that can climb above 50k, a higher low structure and a lack of immediate bubbles in the structural landscape right now, I find it highly doubtful that we will revisit that level,” he said.
“It's not really impossible,” he warned. The price of Bitcoin last fell below $50,000 on February 13th, at $49,725.
A day earlier, on February 12, it reached $50,000, a mark that hasn't been hit in two years, last reached in December 2021.
The claims were backed up by global asset manager BlackRock's recent update to its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five large Wall Street firms as new authorized participants.
New members include ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs and UBS Securities
Related: Historical data suggests that the 2028 Bitcoin halving price target is $435,000
Prominent crypto traders are speculating on the price of Bitcoin, which is just 13 days away from the halving event scheduled for April 20. This event occurs every four years and reduces mining rewards by 50% from 6.25 BTC to 3.125 BTC.
Cointelegraph recently reported that the price of Bitcoin has increased by 658% since the last Bitcoin halving in 2020. If historical chart patterns repeat, Bitcoin's price will halve to 434,280 cents by 2028, similar to the current cycle.
Crypto trader Rect Capital believes there is huge potential for further upside in the short term. In an April 7 post to his 443,000 followers, he said the market is about a third of the way through a “bull market.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
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