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Crypto analyst and Forex Pro trader, Alex Kuptsikevich, has issued a warning that Bitcoin might experience a significant panic sell-off if its price drops below the $60,000 level in the coming days.
Market sentiments suggest that crypto traders are aiming for a breakthrough above $65,000 before considering the market as bullish.
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On Monday morning, Bitcoin briefly surged to $63,000, along with other altcoins like Ether, Solana, and Dogecoin experiencing a 3% surge following Bitcoin’s rise.
The native token of the Tonchain blockchain ecosystem, Ton, led the price surge by rising 7% on Monday morning.
Bitcoin’s price has been fluctuating between $60,000 and $70,000 since March. The highly anticipated halving event on Bitcoin’s price, coupled with reduced inflow from exchange-traded funds, has contributed to an overall bearish market sentiment.
Alex Kuptsikevich highlighted that the price action has shown a pattern of lower lows and lower highs, indicating investors selling into strength during price rallies. He mentioned pressure from asset sell-offs by miners and concerns about tighter regulation of cryptocurrencies, particularly after April’s halving.
Kuptsikevich warned that a failure to stay above $60,000 could trigger a panic sell-off, while a positive scenario would involve a rise above $65,000, with the price stabilizing around the 50-day moving average and the reversal area in early May.
In addition, analysts at crypto investment firm Ryze Labs emphasized the potential influence of short-term Bitcoin holders on the market. They noted that the behavior of holders who keep Bitcoin for less than 155 days could significantly impact markets in the coming months.
Ryze Labs’ analysts pointed out instances where short-term holders made significant profits, followed by Bitcoin price drops as they sold back to long-term holders. They suggested that a similar cycle might occur in the future, leading to Bitcoin price drops if institutional demand and macroeconomic conditions weaken.
Currently, Bitcoin is trading slightly above $62,000, while Ethereum, the second-largest crypto asset, has dropped below the $3,000 mark. Despite the Bitcoin halving event in mid-April, which was expected to increase its price, the event had an underwhelming impact on Bitcoin’s price.
