Key support breached, $48,000 next?

Bitcoin fell to $53,500 in early trading hours in Asia on Friday, its first low in four months. This significant decline has raised concerns among investors and market analysts.

According to BeInCrypto data, Bitcoin (BTC) has fallen by about 6% in the last 24 hours.

Bitcoin's sharp fall in liquidation more than 589 million dollars

Volatility in Bitcoin and the broader crypto market has led to massive outflows. A total of $589 million included more than $511 million in long positions and $78 million in shorts. In particular, nearly 100 million dollars were released in the last hour.

However, in an interview with BeCrypto, Avinash Shekhar, CEO of crypto derivatives exchange Pi42, stated that price volatility is an opportunity for short-term traders.

“Such moves often provide opportunities, especially for scalpers, to recover their liquid businesses,” Shekhar told BeInCrypto.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

In a more volatile market, the Mt. Gox bankruptcy estate transferred billions of dollars worth of bitcoins to an anonymous wallet. According to blockchain analytics firm Arkham Intelligence, this involved moving 47,228 BTC worth an estimated $2.71 billion.

Prior to this, the property had carried out several small test transactions. With payouts expected to start soon, about 142,000 BTC and 143,000 Bitcoin Cash (BCH) are available for payout.

Additionally, recent measures by the German government have contributed to market anxiety. This week, he transferred 1,300 BTC worth about $75.5 million to his wallet and several crypto exchanges, including Bitstamp, Coinbase and Kraken. This development has exacerbated the risk of further devaluation.

In the midst of these developments, prominent crypto analyst Miles Docher expressed his frustration and suggested a quick drop to $48,000 to end the current market turmoil.

“Can we nuke it to $48,000 now and get this sh*t over with? Dear Germany and Mount Gox – Please only swallow your entire stack. Dear retail, please just panic sell your low confidence. Get rid of the pain quickly, then only up,” Deutscher wrote.

Similarly, crypto analyst Dave The Wave said Bitcoin breached a critical support level at $56,500. It indicated that the next significant Fibonacci level near $48,000 could provide the necessary support.

Read more: 7 Best Crypto Exchanges in the US for Bitcoin (BTC) Trading

Despite the market's headwinds, Dave The Wave maintains an optimistic outlook, reminding investors that the market is still technically in a bull market.