How Low Bitcoin Price Might Drop in this Crash, Here’s What Analysts Say?
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The cryptocurrency market is facing another day of heavy losses, with the leading cryptocurrency, Bitcoin, plummeting over 8% to trade below the $61,000 mark. This marks the most substantial single-day percentage decline since November 9, 2022, when prices experienced a sharp 14% drop following the collapse of the FTX exchange, formerly the third largest in the market.
Many crypto analysts are now predicting that the price of Bitcoin could fall further, reaching $58,000 in a short period.
FOMC Meeting Uncertainty
In a recent tweet, renowned crypto analyst Michael van de Poppe raised concerns about a possible further decline in bitcoin prices. He pointed to today’s FOMC meeting, where Federal Reserve Chairman Jerome Powell is set to talk about the Fed rate cut for March month.
Additionally, the Fed’s pledge to maintain the rates steady until inflation falls below 2%. This suggests that there won’t be any change in the fed rate will be seen.
Adding further to market uncertainty, van de Poppe points out that the recent decision by the Bank of Japan (BOJ) to raise its short-term policy rate from -0.1% to zero to 0.1% could have a significant impact on cryptocurrency market capitalization.
BTC To Fall: $58k Level
On the other hand, Crypto Rover offers takes a bearish stance, foreseeing Bitcoin’s potential bottom around $58,000-$60,000. Meanwhile, the reason behind such a prediction comes against the massive outflow witnessed by the grayscale ETF of $643 million.
In addition, bitcoin’s sharp decline led to massive liquidations of $440 million among crypto futures traders, especially those with long positions. Meanwhile, most of the liquidation occurred at Binance, with a total of $212 million, followed by $170 million at OKX.
Bitcoin price analysis
Bitcoin’s recent record high of over $73,738 was followed by an impressive 17% decline. To regain bullish momentum, Bitcoin must hold above a critical support level at $61,025, which sets the stage for a test of resistance around $68,519.
On the other side, if the bulls fail to recover, the price could give up $61,025, indicating significant downside potential. In such a scenario, the bears could target the $58,000 support level next week.
Bitcoin is currently trading at $62,865, representing a 2.3% drop in price over the last 24 hours.
