Bitcoin Price Still Has Room To Fall Below $60K — Crypto CEO

Overview

Bitcoin has experienced a turbulent trading period recently, struggling to maintain its position around the $90,000 mark. Despite a previous surge that hinted at a potential return to six-figure valuations, the flagship cryptocurrency has lost its bullish momentum, raising concerns about its future trajectory.

Recent Trading Struggles

Over the past week, Bitcoin’s price has hovered around the psychological threshold of $90,000. This recent downturn has effectively put an end to speculation regarding potential “relief rallies” that could push the price upward. Instead, current market conditions appear to align more closely with a bear market structure.

The situation is compounded by insights from industry experts suggesting that Bitcoin could face further declines. Joao Wedson, the CEO and founder of Alphractal, recently expressed concerns about Bitcoin’s potential to fall below the $60,000 level. His assessment is grounded in an analysis of the “Days Spent at a Profit” metric, which tracks how many days Bitcoin has traded at prices above its current valuation.

According to Wedson, Bitcoin has spent 355 days trading at levels higher than its current price. This metric serves as a historical indicator of market behavior, suggesting that a higher number of days spent at a profit typically occurs during bear cycles or extended sideways trading periods.

Historically, when the “Days Spent at a Profit” metric reaches around 775 days, it often coincides with Bitcoin approaching market bottoms. In contrast, the current figure of 355 days indicates that Bitcoin is still significantly distanced from the extreme levels typically associated with bearish market bottoms. This analysis implies that Bitcoin’s price may be at risk of further declines over the coming months.

From Author

The analysis provided by Wedson highlights the precarious state of Bitcoin’s market position. The correlation between the “Days Spent at a Profit” metric and market cycles offers a framework for understanding potential price movements. As Bitcoin navigates this challenging landscape, the implications for both retail and institutional investors could be substantial, particularly if the price approaches the $60,000 mark.

Impact on the Crypto Market

• Bitcoin’s current trading struggles indicate a possible continuation of bearish market conditions.
• The “Days Spent at a Profit” metric suggests that Bitcoin has not yet reached extreme bearish levels, potentially allowing for further price declines.
• If Bitcoin drops below the $60,000 level, it could trigger significant liquidations among both retail and institutional investors.
• The overall sentiment in the crypto market may be impacted as traders reassess their positions based on these insights.
• The potential for extended price declines could deter new investors from entering the market, affecting liquidity and trading volumes.