Despite a brief recovery from the flash crash of October 10, Bitcoin’s price remains under a cloud of uncertainty, with many analysts predicting a bearish outlook for the cryptocurrency. After failing to reclaim the $115,000 mark, concerns about a substantial downturn are growing stronger.
Bitcoin Price on the Brink of a Breakdown
Crypto analyst RealMacro has cautioned that Bitcoin may be on the verge of a significant price crack. Currently consolidating around the $110,000 range, Bitcoin has shown little momentum to suggest a rally is imminent. As the cryptocurrency landscape shifts, the bears appear to be gaining ground, leading to increased fears of a market downturn.
RealMacro describes the current scenario as a “critical inflection point.” There is still potential for a surge to new all-time highs; however, the prevailing sentiment leans heavily towards the bearish side, raising alarms about the possibility of a major breakdown.
According to the analysis, should a price drop occur, it could lead to what is termed a “waterfall decline”—characterized by a rapid and steep reduction in price, which could push Bitcoin to new yearly lows. This pessimistic outlook implies a double-digit decline if the bearish scenario unfolds.
If the anticipated breakdown materializes, the analyst suggests that Bitcoin’s price could plummet by over 50%, advising investors to consider exiting the market preemptively to avoid substantial losses.
Furthermore, analysts have placed the target for this potential crash below $30,000, representing a staggering 70% decrease from current levels. Such a decline is likely to have ripple effects, leading to significant losses in altcoins across the board.
Currently, the Bitcoin Fear & Greed Index paints a bleak picture, indicating consistent fear among investors. Earlier this week, the index plunged into the Extreme Fear territory, signaling a lack of liquidity entering the market. While a slight uptick into the fear range occurred, investor sentiment remains cautious and apprehensive.
Though bearish times can often present favorable buying opportunities for investors, the looming question remains: what could happen to Bitcoin’s price if the downturn escalates? As it stands, Bitcoin still hovers above the $100,000 barrier, yet the market’s trajectory could shift dramatically if bearish predictions hold true.
