Prominent cryptocurrency analyst and FX Pro trader Alex Kuptsikevich has issued a warning, stating that if Bitcoin falls below $60,000 in the next few days, there may be a big panic sell-off.
Before the market is considered positive, cryptocurrency traders, based on market sentiment, are looking for a break of above $65,000.
Bitcoin has been trading between $60,000 and $70,000 since March, surging to $63,000 on Monday morning. Other altcoins like Ether, Solana, and Dogecoin also surged by 3% due to the price of Bitcoin. However, crypto analyst Alex Kuptsikevich has warned that if Bitcoin drops below $60,000, it could trigger panic selling.
Read also: A guide to understanding cryptocurrency: Beyond Bitcoin
By increasing 7% on Monday morning, Tonne, the native token of the Telegram-related Tonchain blockchain ecosystem, drove the price increase.
Mining Challenges Weigh on Bitcoin and price swings
Bitcoin’s price reached an all-time high of $75,830 on March 14, 2024. Bitcoin’s price has been highly volatile since its release due to several factors. The cryptocurrency market is smaller and not heavily traded like traditional markets, so big trades can substantially increase the price. Bitcoin’s value depends on public sentiment and speculation, leading to short-term price changes. Media coverage, influential opinions, and regulatory developments create uncertainty, affecting demand and supply changes and contributing to price fluctuations. Another critical factor is Bitcoin’s fixed supply. With only 21 million bitcoins ever to be minted, its scarcity can lead to dramatic price changes as demand varies.
In a note to Coin Desk, Alex Kuptsikevich explained that the price movement has been defined by a series of lower highs and lower lows, which indicates that investors are selling into strength during price increases.
In addition, the economic model for mining cryptocurrency has become unprofitable and unattractive, resulting in a decrease in miners due to the difficulty of the mathematical challenges and the rise in resources required to solve them.
Analysts at the cryptocurrency investment business Ryze Labs have argued for the impending effect of short-term bitcoin holders in the general markets and the warning issued by crypto expert Alex Kuptsikevich. Per their statement, the conduct of individuals who possess Bitcoin for a shorter duration than 155 days, or short-term holders, has the potential to significantly impact markets in the upcoming months.
Short-term investors, however, suffered several losses following these price peaks, forcing them to sell back bitcoin to long-term investors. According to the Ryze Labs research team, this change often results in significant drops in the price of bitcoin within four to six months.
As a result of institutional demand and the better state of the economy, the analyst concluded there may not be a drop in the price of Bitcoin today due to this cycle.
Read also: Kenya’s Bitcoin miners find ways to bring electricity to rural homes
What to be aware of With Bitcoin
The second-largest cryptocurrency asset, falling below the renowned $3000 milestone, Bitcoin is currently selling at just over $62,000. As expected, the mid-April Bitcoin halving event did not affect Bitcoin’s price. It is anticipated that the occurrence, which would result in cryptocurrency miners receiving half of their original payments for mining the cryptocurrency, will lower the number of miners, making Bitcoin more scarce, thereby raising its price. The event didn’t have a very significant impact on the price of Bitcoin.
But if these things begin to fade away, the price of bitcoin will fall like in the past.
