Bitcoin experienced a flash crash on July 4 and 5, leading to a 30% drop from its all-time highs. Despite a slight recovery over the weekend, the world’s most valuable coin, BTC, remains in a bearish formation.
One analyst mentioned on X believes that the recent optimism may be short-lived, with the potential for BTC to drop below last week’s lows and even break the critical $50,000 level. Referring to historical price action, the analyst suggested that Bitcoin could plummet to around $48,000, representing a 40% decline from its peak.
Looking at the Fibonacci retracement tool, the analyst pointed out that a 40% drop from recent highs could place Bitcoin around $37,000 if specific swing highs and lows are considered. The weekly chart also shows cracks, with Bitcoin closing below the 20-period moving average, indicating that sellers are gaining control.
Despite the current correction, another analyst predicts a strong bounce back for Bitcoin if it finds support between $47,000 and $50,000. In this scenario, the coin could potentially rise to $102,000 and even reach as high as $242,000 in the future.
The confidence in Bitcoin’s recovery post-sell-off is backed by historical trends, particularly after the Halving event. Following the reduction in miner rewards in April, Bitcoin prices typically recover steadily, leading to further bullish momentum.
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