The recent 5% drop in Bitcoin’s price, pushing it down to $60,000, highlights a significant downturn following a weeks-long decline from its peak near $75,000 in mid-March. Now, Bitcoin faces a double whammy as it breaches a crucial technical support level, potentially signaling further short-term downside. 

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Bitcoin Price to Take a Dip Below $40K? Experts Weigh In

On a similar front, Crypto analyst DonAlt has put forward a scenario suggesting that Bitcoin’s price could experience a significant drop to as low as the mid-$40,000 range, potentially serving as a necessary correction for the continuation of BTC’s bull run.

DonAlt’s analysis stems from Bitcoin’s recent retreat to the $60,000 price range and the possibility of breaking below that crucial support level if it faces sustained testing. The chart analysis reveals that a breach below the $60,000 mark could lead to further downward movement, with Bitcoin potentially plummeting to $52,000 or even as low as $47,000.

Interestingly, DonAlt suggests that the recent price drop could help Bitcoin in the long run by getting rid of investors who panic easily and making sure people don’t get too comfortable with its price going up all the time. He thinks some investors aren’t paying enough attention to the risks of Bitcoin, especially after it kept going up for a while. DonAlt will keep thinking this way unless Bitcoin goes back above $68,000 or drops below $60,000 and then goes back up again.

Notably, Denis Baca, Head of Product at Zivoe Finance, agrees with DonAlt that Bitcoin may decline to $60,000 before parabolic moves. Baca cites to historical patterns, including the May retesting of the 20-week SMA (small moving average) support level, which might bring Bitcoin back to $56,000.

Fairlead Strategies founder Katie Stockton warned that Bitcoin’s failure to hold above the range of $61,100 to $62,200 indicates vulnerability to more losses. This technical sell signal suggests a challenging road ahead for Bitcoin shortly.

A Drop in Whale Activity!

Crypto expert Ali Martinez has also noticed a drop in Bitcoin whale activity from March 14, suggesting Bitcoin bull momentum is receding. Whale activity has dropped, suggesting major investors are losing confidence, which might affect market sentiment. Martinez suggests that whale transactions could revive Bitcoin bulls.

Plus, CryptoQuant’s Head of Research, Julio Moreno, emphasizes a slowdown in demand for Bitcoin, particularly in Spot Bitcoin ETFs, which could be hindering the cryptocurrency’s ability to experience another rally. Moreno suggests that a growth in demand is necessary for Bitcoin to witness significant price appreciation.

Everyday market is getting volatile and post halving effect of Bitcoin might ruin its bullish goals in May. Stay tuned.

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