No Bottom for Bitcoin – BTC traders have set price targets in the low $40K range
In the year Bitcoin (BTC) fell below $50,000 during early Asian trading hours on August 5. In the last three days, Bitcoin has fallen by about 31% in “a 7-10 year event”, analysts have given different opinions on the inability of BTC to recover in the short term.
Bitcoin's fall below $50,000 was accompanied by a check on several profit spots after more than $500 billion was wiped out of the crypto market in 24 hours.
According to data from Coinglass, about $1.08 billion in leveraged positions were dumped on derivatives markets, with long liquidity accounting for 74 percent of that at $803.76 million.
At the same time, over $404.63 million worth of Bitcoin positions were liquidated, of which $282.81 million were long liquidations.
The market has different opinions about the Bitcoin price recovery
Bitcoin's current price correction comes against a backdrop of several factors, including weak US economic and jobs data on August 2 that fueled recession fears and tensions in the Middle East.
‘Are we hit by a storm? QCP analysts said in a note posted on Aug. 5 on Ex.
Independent trader Bob Lucas refers to this as a “once in a 7-10 year event,” which makes it difficult to predict which market action will take place after such a downturn.
Lucas has the opinion that this correction can continue until mid-September, at some point a good rally. “In the end it seems like a deep cycle going backwards,” he added.
Associate analyst McKenna warned Bitcoin investors not to expect a quick recovery in the short term, saying the market could move “sideways for 1-2 months.”
“This is not the underlying condition. I believe the value will remain cheap for some time and enter the stock market phase.
Michael van de Pop, founder of MN Capital, took a more neutral stance, saying that the ongoing correction in BTC prices could mark the bottom of the cycle or the start of a “major crisis”.
“It's binary. Either it repeats the V-shape, and rotates to $BTC as a safe haven along with gold and $ETH, taking DeFi as a safe haven for banking systems.
If a V-shaped recovery is formed, BTC could rise significantly in the next few days, increasing by 32% to retest the $70,000 level. The Relative Strength Index (RSI) is in the oversold range at 28, which suggests that the downward momentum may run out of steam, leading to a recovery if the bulls start buying dips.
Related: Bitcoin analyst sees seller ‘fatigue' as BTC price rises 10%
Analysts target 40,000 Bitcoin
The ongoing market correction has market participants wondering how low the price of Bitcoin can go before a trend reversal occurs.
CryptoQuant founder Ki Young Joo has set a lower target in the $45,000 to $55,000 demand zone. Traders' price base is known to support prices during bull markets.
Young Ju warns that if the price falls below this demand zone, it will prove a bear market, as it did in November 2018, March 2020 and May 2022.
According to renowned analyst Scott Meeker, the price of Bitcoin may drop below $45,000 before September.
“Polymarket traders are betting that Bitcoin will continue to fall, predicting a 45% chance of falling below $45,000 before September. That sentiment rose to 65% in early European trading hours amid a flurry of liquidity.”
Next, Bitcoin analyst Tur Demester sees BTC trading above $51,000, saying the $45,000 to $40,000 demand zone could be a technical downside target for BTC.
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.
