Bitcoin Sell-Off Intensifies: Analysts Warn of Further Declines Before Recovery

Bitcoin’s recent sell-off could be just the beginning, according to analysts who are closely monitoring price charts. The cryptocurrency experienced its first negative month in eight and its worst month since November 2022, sparking concerns among investors. The downward trend intensified on Wednesday as bitcoin dropped below the key $60,000 support level for the first time since February.

Analysts like Ari Wald from Oppenheimer and David Keller from StockCharts.com are predicting further downside for bitcoin, with Wald suggesting that the cryptocurrency could fall below $50,000. Keller sees potential downside risk between $50,000 and $52,000, based on retracement levels and moving averages.

Geoff Kendrick, head of digital asset research at Standard Chartered, also believes that bitcoin’s breach of the $60,000 support level opens the door for a potential drop to the $50,000 to $52,000 range. Rob Ginsberg from Wolfe Research added that $60,000 bitcoin looks “vulnerable” and that $50,000 could be in play.

Despite the short-term bearish outlook, analysts like Keller remain optimistic about bitcoin’s long-term prospects. They point to historical trends that show bitcoin often sells off in the month following a halving event, only to experience significant bullish upswings in the following year.

Investors have been bracing for volatility in the cryptocurrency market, especially after key events like the introduction of bitcoin ETFs in the U.S. and the recent halving. While the near-term outlook may be uncertain, analysts are hopeful that bitcoin will eventually break out to new all-time highs later in 2024.

Overall, the future of bitcoin remains uncertain, with analysts divided on whether the sell-off will continue or if the cryptocurrency will rebound in the coming months. Investors will be closely watching price movements and market indicators to gauge the direction of the flagship cryptocurrency.