As Bitcoin (BTC) bulls grapple with the monumental challenge of sustaining prices above $60,000, a crypto analyst has issued a warning, suggesting that market participants should brace for further downside before any chance of resurgence.
In an X post on April 27, the analyst, who goes by the pseudonym YG Crypto, highlighted Bitcoin’s current critical support level of $59,000-$60,000, indicating potential volatility ahead for the leading cryptocurrency.
Once this support is established, the analyst suggested that it will be pivotal in determining Bitcoin’s future price trajectory, potentially signaling either a rebound or a breakdown as it serves as the next significant springboard.
“This area could act as a potential springboard for a price rebound or a potential breakdown point if bulls fail to hold. Investors are watching closely to see how price action unfolds at this critical juncture. A decisive bounce could signal renewed buying pressure, while a break below support could lead to further downward movement,” the analyst said.
Bitcoin whales dormant
Adding to the intrigue is the recent decline in Bitcoin whale activity since March 14, as identified by another analyst, Ali Martinez. He noted that whale activity, which substantially shapes market sentiment and price movements, has noticeably decreased.
Martinez suggested that a surge in whale transactions could be the catalyst needed to reignite buying interest in BTC.
Bitcoin hit by ETF inactivity
Overall, Bitcoin continues to be dominated by bearish sentiments as investors await the full impact of the recent halving event. Notably, when historical performances are considered, the current price trajectory has not surprised some market participants.
In the past, Bitcoin has experienced two corrective waves: one before the halving and another after the halving. Therefore, this historical precedent suggests that Bitcoin can witness another pullback within weeks after the most recent halving.
At the same time, current Bitcoin troubles can be linked to reduced activity around exchange-traded funds (ETFs). According to a Finbold report, outflows from Bitcoin spot ETFs have occurred for the third consecutive day. This shift has seemingly exerted pressure on the cryptocurrency’s price.
The ETF slowdown is concerning, especially considering a recent report by Ecoinometrics. The report suggested that Bitcoin can only grow further with increased activity in these products.
As it stands, Bitcoin is still under pressure to maintain its valuation above $63,000. At press time, the crypto had slightly surged above this level, trading at $63,065, with daily losses of 1.7%.
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