A cryptocurrency analyst has shared reasons why the price of Bitcoin could drop to lows of $52,000. The analyst pointed out that Bitcoin has broken key support levels, signaling a potential shift from a bullish to a bearish position.
Analyst Predicts Bitcoin Crash to $52,000
In a post on X (formerly Twitter) on June 21, cryptocurrency analyst Justin Bennett forecasted a potential price crash for Bitcoin to a range between $52,000 and $54,000. Bennett highlighted that Bitcoin’s price has been trading within a range without a clear trend, moving between support and resistance levels. He mentioned factors such as breaking a key trend line from October 2023 and market imbalances between February 26 and 27 as reasons for the bearish outlook. Bennett also noted significant liquidity below the $56,500 price level for Bitcoin, suggesting a possible drop below $60,000. On the upside, a bullish reversal above $72,000 could capture liquidity at higher levels, though this scenario is deemed less likely based on the current Bitcoin chart.
Decline in Investor Interest in BTC
In a recent post, cryptocurrency analyst Ali Martinez pointed out a diminishing interest in Bitcoin among investors. Martinez highlighted a decrease in exchange-related on-chain activities and network usage for Bitcoin, indicating a shift in demand for the cryptocurrency. Martinez mentioned a growing optimism towards Ethereum, the largest altcoin, as evidenced by increased social media mentions. This shift in investor sentiment could be attributed to the upcoming launch of Ethereum spot ETFs, expected to attract significant inflows and potentially drive up Ethereum’s price. Martinez echoed similar sentiments with analyst Bennett, predicting a potential price correction for Bitcoin towards new lows around $54,930.
At the time of writing, Bitcoin is trading at $64,265, reflecting a 2.87% decline over the past week, according to CoinMarketCap.