Analyst Predicts Further Bitcoin and Ethereum Price Capitulation
In a recent report, top analyst Markus Thielen shared his bearish outlook on Bitcoin (BTC) and Ethereum (ETH) prices, cautioning against buying the dip too early. Thielen, known for his accurate predictions in the past, believes that both cryptocurrencies could experience further price capitulation before any significant rally occurs.
Key Support Levels and Potential Crash Range for Bitcoin
Using an analog model and objective analysis, Thielen’s research firm has identified key support levels for Bitcoin. Currently, these levels are at $63,000 and $60,000. If the $60,000 support is broken, BTC price could potentially crash to the $52,000-54,000 range.
Thielen’s prediction aligns with previous forecasts by other analysts such as Rekt Capital, who have also suggested a possible correction based on historical pre-halving reversal patterns.
Why It’s Too Early to Buy the Dip
Despite the current lower prices of Bitcoin, Ethereum, and other altcoins, Thielen advises against buying in this downturn just yet. He believes that it’s still too early to enter the market and expects Bitcoin to fall below $60,000 before any significant rally occurs.
The research firm has set upside targets for Bitcoin at $83,000 and $102,000 based on previous new high signals.
“Technically, we still expect Bitcoin to trade below 60,000 before a more meaningful rally attempt is started. Based on the previous new high signals, we could paint a rosy picture of 83,000 and 102,000 upside targets.”
Other Factors Influencing Bitcoin’s Upside Trajectory
Aside from technical analysis, there are other factors that could impact Bitcoin’s price in the near future:
- The Federal Open Market Committee (FOMC) is set to announce its monetary policy decision on rate cuts today. Traders will be watching for guidance from Fed Chair Jerome Powell on expected rate cuts in 2024.
- Options expiry data for this week suggests that traders are betting on put contracts at $58,000, indicating a sentiment towards Bitcoin price breaking below $61,000.
- Bitcoin futures open interests have seen a slight increase, but the total remains relatively flat around $33 billion.
- Spot Bitcoin ETFs recorded a net outflow of $326 million on Tuesday, and pre-market data indicates that outflows are likely to continue this week.
These factors contribute to the current market sentiment and could potentially influence Bitcoin’s price movements in the coming days.
Currently, BTC price is trading at $63,177 with a 24-hour low and high of $60,807 and $65,757 respectively. The trading volume has remained relatively flat over the last 24 hours.
Hot Take: Exercise Caution Amidst Market Volatility
As the crypto market continues to experience volatility and uncertainty, it’s crucial for traders and investors to exercise caution. While lower prices may appear tempting for some, it’s important to consider the potential risks and further price capitulation predicted by analysts like Markus Thielen.
Here are a few key takeaways:
- Bitcoin and Ethereum prices could see further capitulation before any significant rally occurs.
- Key support levels for Bitcoin are currently at $63,000 and $60,000.
- Other factors such as the FOMC’s monetary policy decision and options expiry data could influence Bitcoin’s price trajectory.
- It’s still too early to buy the dip, and caution is advised when entering the market.
By staying informed and carefully analyzing market conditions, traders can make more informed decisions and navigate the volatile crypto landscape with greater confidence.
By
By
By
By
By
By