Although Bitcoin has regained the $56,000 price level in the past few hours, Sudden drop below $54,000 On July 5, investors were reminded of Extreme fluctuations Market related. On the larger time frame, Bitcoin has fallen by 7% and 20.25% in the past 37 days, respectively.
While many crypto traders and analysts remain bullish on the long-term outlook, the sudden price drop came as no surprise to some. Notably, crypto trader @TheFlowHorse revealed that the drop to $53,000 is in line with his target of $52,000. Similarly, Ki Young Ju, CEO of CryptoQuant, suggested that Bitcoin could drop to $47,000.
Bitcoin price may collapse to $47K
According to Ki Young Ju, Bitcoin is Still in a bull market In the larger timeframe, which will last until early 2025. This school of thought resonates with many other Bitcoin price predictions, especially in the long term. Despite this bullish outlook, market participants are currently struggling under bearish conditions in the short term.
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As Ki Young-joo points out, this uncertainty opens the door to the possibility that the world’s leading cryptocurrency could fall to $47,000 before recovering. With the crypto market in a prolonged slump since early June, this bearish scenario seems increasingly likely. Bitcoin in particular has lost billions of dollars, and investor confidence has waned.
$112,000 at the peak of the cycle.https://t.co/beKpUVkNXL pic.twitter.com/Esj02BYms4
— Ki Young Ju (@ki_young_ju) July 5, 2024
Young-joo advises traders not to open long or short positions with high leverage based on his long-term bullish outlook due to the prevailing uncertainty. When asked about his long-term price target for Bitcoin, he said: I noticed an increase To $112,000 at the peak of the cycle. This forecast is based on the realized market cap of Bitcoin since July 2010.
Bitcoin bearish condition
At the time of writing, Bitcoin is trading at $56,520 and has rebounded 4.67% since its recent drop below $54,000. However, despite this price recovery, the cryptocurrency faces a significant downside risk. More whale saleswhich has traded over $1.7 billion in bitcoin in the past 30 days. The defunct cryptocurrency exchange Mt. Gox is also start paying off her debts In Bitcoin after 10 years of inactivity. This is expected to release $2.71 billion worth of Bitcoin into the market, which could intensify selling pressure.
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A return to the downtrend has not yet been announced. If Bitcoin drops to $47,000, it will represent a 16% drop from the current price level. Market participants continue to wait and see how the Bitcoin price will move. It is shown in July, It is a historically positive month.
Featured image created using Dall.E, chart from Tradingview.com