Bitcoin is not Out of the Woods Yet - Another Fall Coming?

Bitcoin, the undisputed leader of cryptocurrencies, is currently under the spotlight due to concerning analyses that suggest bearish scenarios. This situation is causing significant anxiety among investors and could have substantial repercussions on the overall cryptocurrency market.

Jason Pizzino warns about Bitcoin’s key support

Crypto analyst Jason Pizzino recently issued alarming warnings about the future of Bitcoin. In one of his recent YouTube videos, he highlighted that the main cryptocurrency could undergo a significant drop if it fails to maintain its crucial support level. According to Pizzino, breaking below the $50,000 threshold could lead to a fall towards the critical support of $44,600. He specified that candle closures below this level would considerably increase the likelihood of a descent below $40,000, marking a major trend break. At this point, according to the analyst, Bitcoin could test levels of $30,000 and $20,000. It would then be “Game Over” for the queen of cryptos.

Despite these bearish outlooks, Pizzino also indicated that if Bitcoin manages to stay above its bullish market support, it could continue its upward trend. Indeed, he mentioned that levels up to $60,000 could be reached by this November, as long as Bitcoin remains above $49,243. However, market observers emphasize that the psychological threshold of $60,000 remains a key point for continued growth and overall market stability.

Do you feel like a low is brewing, or is it the end of the bull? Either way, it sounds like the outcome is a turd. Just how big will that turd burger be?

🔴 More info in today's video 👇 #Bitcoin https://t.co/V3t7YznUS5 pic.twitter.com/tL23Y99cji

— Jason Pizzino 🌞 (@jasonpizzino) July 5, 2024

Technical signals indicate an imminent drop

According to 10x Research, Bitcoin could drop below $50,000 due to a combination of selling pressures and bearish technical indicators. Massive Bitcoin transfers by the U.S. government, the German government, and Mt. Gox, totaling 17,888 BTC since June 19, 2024, have caused panic among investors. This situation has led to a drop in Bitcoin’s price to its lowest level since February.

Additionally, a technical analysis reveals that Bitcoin is currently trading below its 20, 50, and 200-day exponential moving averages, indicating a pronounced bearish momentum. Key indicators like the RSI and MACD corroborate this negative trend on the daily technical chart. Experts estimate that if Bitcoin breaches the critical $50,000 threshold, the next support could be around $44,771. This series of bearish forecasts underscores the importance for investors to remain cautious and prioritize risk management in the face of this period of increased volatility.

Bitcoin is going through a turbulent period marked by analyst warnings and significant selling pressures. Experts’ forecasts indicate a potential decline below current levels, which could have profound implications for the cryptocurrency market.