The post Bitcoin Analysts Predict Further Price Declines, Suggesting Long-Term Support Levels May Be Tested appeared on BitcoinEthereumNews.com.

Amidst a turbulent macroeconomic landscape, Bitcoin (BTC) is facing significant resistance as it navigates potential new lows while traders adjust expectations. Market volatility has intensified, prompting analysts to eye much lower price targets following a dramatic price surge to $96,000. In a surprising twist, Bitcoin’s recent climb has led to widespread liquidations, amounting to nearly $900 million within a single day, affecting both retail and institutional investors alike. Popular commentator BitQuant has pointed out that despite previous optimism, the latest dip may not mark the bottom for Bitcoin, suggesting a significant downward trend could still be on the horizon. Bitcoin’s Liquidation Crisis: A Deeper Analysis The recent spike in Bitcoin’s price was unexpectedly followed by a sharp correction, leading to a liquidation crisis that saw over $900 million in losses. This sudden downturn has led many traders to express their concerns regarding overall market dynamics. Farside Investors reported that the U.S. spot Bitcoin exchange-traded funds (ETFs) experienced record net outflows, totaling $679 million—an alarming sign of declining investor confidence. For seasoned market participants, the pressure of such significant withdrawals is a clear indication that panic is setting in. The fear and uncertainty surrounding the cryptocurrency market are palpable, especially with indications that further declines may be imminent. Analysts now suggest that targets below $90,000 could become more common as bearish sentiment grips traders. Onchain Data Insights: Accumulation Patterns Emerge Despite the prevailing sentiment of doom, some analysts find solace in onchain data, which suggests underlying strength in large-volume accumulators. The data platform Whalemap highlights areas of notable Bitcoin accumulation, particularly within the $60,000 to $67,000 price range, which they suggest could act as a support zone during this turbulent phase. An analysis of the Onchain Volume Profile indicates that at these levels, significant buy pressure may provide a buffer against…

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Filed under: News - @ December 20, 2024 8:16 am