Bitcoin Braces for 50% Plunge? Analyst Warns of $60K Floor Ahead
Blood in the crypto streets? A chilling forecast suggests Bitcoin could halve its value—with $60,000 emerging as the next critical battleground.
### The $60K Line in the Sand
Technical charts are flashing red as traders eye a potential 50% correction from current levels. The last time BTC saw these depths? Back when Wall Street still called it a 'fad.'
### Liquidation Looms Large
Leveraged positions could get obliterated if support cracks—just in time for hedge funds to swoop in with 'smart money' buys. How convenient.
This isn't your 2018 crash replay though. Institutional custody, ETF flows, and that pesky halving math might just rewrite the playbook. Or not—because when has crypto ever followed a script?
Bitcoin Price At Risk With Dwindling Volume And Momentum
In the analysis, FriendlyRox highlighted the decline in major metrics such as momentum and volume as the major driver of the forecasted price crash. This comes amid bullish news dominating the headlines, such as institutions increasing their Bitcoin holdings and supply on exchanges falling toward new lows, meaning investors are choosing to hold for higher prices.
The decline in the volume has been apparent after the bitcoin price had fallen below $100,000 before bouncing back up in June. So far, in the month of July, the Bitcoin trading volumes have trended lower, with data from Coinglass showing consistent daily volumes below $100 billion. At the same time, there has also been a decline in momentum, with the analyst pointing out a negative divergence in this metric.
Furthermore, the bitcoin price has also flashed a historical trend that has usually predated market tops. This is price reaching the 50 EMA (Exponential Moving Average) and then retracing. FriendlyRox revealed that in the past, whenever the price touched the 50 EMA and then extended back, it usually signalled a crash, and the Bitcoin price has done this now, extending even further.
Other metrics that have also flashed bearishness include the RSI and the MACD, both of which are now showing a loss of momentum as they moved into the negative. All of these factors happening together at the same time have painted a pretty bleak picture for the leading cryptocurrency by market cap.
BTC Bottom Targets
With the lineup of bearish developments, the crypto analyst has predicted an approximately 50% from here. As volume continues to decrease and momentum slides into the negative, they expect that the Bitcoin price will be looking to retrace back to the 50 EMA.
The interesting fact here is that the 50 EMA falls below the previous Bitcoin price peak, putting it at $60,000. A crash of this magnitude WOULD only be rivaled by the COVID crash in 2020 and the FTX-induced market crash back in 2022. But nevertheless, it would mean a wipeout for altcoins across the board.
As for the timeframe for when this could happen, there is no definite timeline. Going by the analyst’s chart, it could take a couple of years for this to completely play out, with the analyst closing with: “Let us see how it unfolds.”
