Bitcoin fell below $40,000 for the first time in two weeks, putting more pressure on the crypto market. The altcoins are also in the red, with Ethereum falling below $2,800 and other altcoins seeing huge price declines.
The desired $40,000 threshold was initially maintained, but BTC fell below it hours later, dropping below $39,500 for the first price since early February. BTC is now trading at $39,936.96 at the time of writing.
What’s the Truth About Bitcoin’s Decline?
Despite the major cryptocurrency’s recent market slump, one prominent crypto analyst is hopeful about the future price movement of Bitcoin (BTC). DataDash host Nicholas Merten tells in a new video that the headlines don’t convey the whole story about Bitcoin’s recent decline.
Talking about what is pulling Bitcoin’s price down in the market, he stated that it is a result of people selling their Bitcoin on the open market.
It doesn’t always have to be about the headlines or current events… People making short-term trades or whales playing games and moving prices one way or the other are two examples.
In the worst-case scenario, Merten predicts that Bitcoin values would fall much further, maybe by another 25 percent from present levels.
According to him we have a real opportunity here, and I’ll say it louder than I think most people will, that we’ve made a mistake and prices will fall back to this level [about $30,000].
Even though we [just] experienced a more heightened breakout in pricing, I believe it is the worst-case scenario for crypto, that we return to this consolidation area, similar to what we did back [in June 2021].
Bitcoin to fall below $30k?
Even if BTC drops below the $30,000 range, Merten advises investors not to panic and sell their holdings. Even if BTC falls to the $35,000 or $30,000 range, he advises not selling crypto.
Whether BTC continues to plummet or not, the analyst believes the overall trend is still upward. He believes that by the end of April or the beginning of May, we will have returned to the all-time highs. It’s possible that BTC will continue to chop sideways while we play catch-up in the short run.
But, once again, when he talks about the possibility of a breakout, he is talking about the weeks and months ahead. He believes Bitcoin will reach a point where it will be able to start charting higher. However, it is possible that it will take a bit longer than we anticipated.
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