Bitcoin is currently facing a critical point in its price trajectory after being rejected at $62,000. This has caused a division in market sentiment, with bulls and bears locked in a fierce battle. While the bulls remain optimistic, the bears have emerged, leading to speculation that the price could drop even further.
Crypto analyst DonAlt believes that Bitcoin has not yet hit its lowest point, despite already experiencing a 15% crash. He predicts that the price could dip below $60,000, signaling a continuation of the downtrend with a potential double-digit decline. DonAlt foresees a possible 30% drop in the price, followed by a period of sideways movement lasting up to four months.
In the worst-case scenario, DonAlt sees Bitcoin’s price falling to $40,000, while the best-case scenario suggests a decline to $52,000 before a potential recovery. The recent crash in Bitcoin’s price has had a ripple effect on the overall market sentiment, causing investors to turn fearful according to the Crypto Fear & Greed Index.
Currently, the index sits at a neutral 47 after dropping to a fearful 40, indicating uncertainty among investors. This could result in sideways movement for Bitcoin in the short term. Despite a recent drop below $61,400, triggered by market events, the price remains volatile.
Overall, the market is experiencing a period of instability, with Bitcoin’s future price direction uncertain. Investors are advised to proceed with caution and monitor developments closely.