Bitcoin (BTC) is experiencing a significant drop in price, falling up to 15% since the weekend. Traders and analysts are now speculating on where the market might bottom out and how quickly this could happen. According to popular analyst Mark Cullen, Bitcoin could face a final down move that could take it to around $59,000. He used the Elliott Wave method to make this prediction. If this were to occur, it would be the lowest BTC price since late February and would represent a drawdown of about 20% from recent all-time highs. Other analysts, such as Matthew Hyland, are looking to the upcoming weekly close to gain insight into the longevity of the current pullback. Hyland noted that BTC/USD has lost the support of its 10-week simple moving average, which currently sits at $64,130. Binh Dang, a contributor to the on-chain analytics platform CryptoQuant, predicts that Bitcoin could stay at lower prices for a longer period before retesting its highs based on his adjusted cumulative value days destroyed (CVDD) metric. However, he does not anticipate the current drop to reach the panic levels seen during the COVID-19 crash in March 2020. The worst-case scenario, according to Dang, would be a drop to just under $40,000. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Analysis challenges the possibility of a 'black swan event' as Bitcoin price continues to decline.