Bitcoin’s price has dropped over 8.8% since last week, following the historic Bybit hack. It peaked at $99,493, but now sits around $91,500, struggling to maintain its critical trading range. Experts predict further volatility, with some forecasting a potential dip to between $73,000 and $77,000. Ari Paul of BlockTower Capital anticipates that Bitcoin may behave like a mix of gold and the S&P 500, while BitMEX founder Arthur Hayes warns of increased selling pressure due to ETF mechanics. Meanwhile, a tight price pattern suggests a significant price swing is imminent, with the Market uncertain about its next direction. Despite the downturn, some analysts believe a full bear Market isn’t inevitable.
The Bitcoin Market has recently experienced a significant decline amidst one of the largest hacks in cryptocurrency history. Following this breach at Bybit, Bitcoin’s price dropped over 8.8% since Friday, falling from a peak of $99,493 to approximately $91,500 at the time of writing. This decline represents a 5.5% drop since Monday and raises concerns about Bitcoin maintaining its critical trading range of $91,000 to $102,000. Additionally, Bitcoin has broken below a downward trend channel that has been active since January.
What’s Next For Bitcoin?
Industry experts are weighing in on Bitcoin’s future amidst current volatility. Ari Paul, co-founder of BlockTower Capital, predicts a broader economic slowdown that could impact both equities and cryptocurrencies. He anticipates a painful equity Market period lasting between four to fifteen months due to deflationary government policies. While he believes that cryptocurrencies like Bitcoin will show short-term correlation with equity markets, he expects them to maintain different cyclical rhythms in the long run.
Paul suggests that Bitcoin could act similarly to gold and the S&P 500. He notes, “If gold remains strong, then that would suggest Bitcoin would outperform losing equities, but maybe not by much.” He mentions a plausible retracement of Bitcoin to the $73,000 to $77,000 range, reasoning that adding more Bitcoin at that point may be wise.
Others, including BitMEX founder Arthur Hayes, have expressed concerns about increased selling pressure due to Bitcoin Exchange-Traded Funds (ETFs) and futures Market strategies. Hayes warns that Bitcoin could drop to $70,000 as hedge funds adjust their positions.
Recent research indicates that while Bitcoin ETFs have garnered significant inflows, much of this capital may be tied to arbitrage strategies rather than straightforward investments in Bitcoin prices. Research firm 10x Research highlighted that only 44% of ETF inflows represent genuine long positions.
Market technician Tony“Young Bull”Severino also raises alarms about potential volatility ahead, pointing to tight Bollinger Bands, which historically indicate upcoming price swings.
As Bitcoin hovers just above $91,000 and the effects of the Bybit hack linger, the Market stands at a critical juncture. Chart signals, uncertain macroeconomic factors, and complex trading strategies present a murky outlook with potential for Bitcoin to slip further down to the $73,000 to $77,000 range.
Yet, this downturn doesn’t necessarily signal the start of a bear Market. Chris Burniske from Placeholder VC states that previous Market resets during bull runs are not unprecedented, cautioning against assumptions of an impending bear trend.
As the situation unfolds, Bitcoin’s price is currently trading at around $90,537, and traders remain on high alert for the next major movement in this volatile Market.
Tags: Bitcoin, cryptocurrency Market, Bybit hack, Bitcoin price analysis, cryptocurrency trends
What is the forecast for Bitcoin prices in the next six months?
Experts predict a price slump for Bitcoin, potentially dropping to around $73,000 within the next six months.
Why do experts think Bitcoin will drop in price?
Experts point to Market trends, economic indicators, and historical patterns as reasons for the predicted price decline.
Can anything stop Bitcoin from falling to $73,000?
While it’s hard to predict, unexpected events in the Market or strong positive news about Bitcoin could change the current trend and prevent the drop.
What should investors consider during this slump?
Investors should stay informed about Market changes, assess their strategies, and consider whether to buy, sell, or hold during this potential slump.
Is this a good time to buy Bitcoin?
If prices do drop to $73,000, some investors might see this as a buying opportunity. However, it’s essential to evaluate personal financial situations and Market conditions before making decisions.
