Bitcoin (BTC) is facing new lower price targets after experiencing a drop of up to 15% over the weekend. Traders and analysts are now considering where the market might bottom out and how soon this could happen. On April 16, BTC/USD failed to hold a significant rebound after challenging $61,000 and is now trading around $62,000. Analyst Mark Cullen believes that BTC could make a final downmove, potentially taking it to around $59,000. This would be the lowest level since late February and represent a drawdown of around 20% from recent all-time highs.
Other analysts, including Matthew Hyland, are looking at the upcoming weekly close to gauge the staying power of the current pullback. Hyland notes that BTC/USD has lost the support of its 10-week simple moving average (SMA), which is currently at $64,130. Full candles below the 10-week SMA have not occurred since mid-2023.
Binh Dang, a contributor to on-chain analytics platform CryptoQuant, believes that Bitcoin could stay lower for a longer period before rechallenging its highs. He analyzes the Adjusted Cumulative Value Days Destroyed (CVDD) metric and predicts that BTC/USD could enter a reaccumulation phase before testing higher levels. While deeper corrections can occur, Dang does not expect the current downmove to reach the panic levels seen during the COVID-19 cross-market crash in March 2020. The worst-case scenario, according to Dang, would be a drop to just under $40,000.
Please note that this article does not provide investment advice or recommendations. It is important for readers to conduct their own research and make informed decisions.