News
Bitcoin losses could deepen after cryptocurrency falls below $60,000, analysts say
The Bitcoin sell-off could get worse before it gets better, according to analysts who only look at price charts. The flagship cryptocurrency just recorded its first negative month in eight and its worst month since November 2022. The downtrend intensified on Wednesday when it fell below the $60,000 level for the first time since February, as stubborn inflation and uncertainty around the Federal Reserve’s interest rate policy continued. markets under pressure. This is a key support level for Bitcoin, representing the rough convergence of the March low and the 100-day moving average, according to Oppenheimer analyst Ari Wald. It’s also a 38.2% retracement from the January-March rally phase, during which bitcoin gained more than 66%, said David Keller, chief market strategist at StockCharts.com, referring to stochastic momentum indicators. Although the long-term uptrend is still intact, Wald said Wednesday’s break of support confirms a short-term high and bitcoin could fall even further – below $50,000. BTC.CM=1D Mountain Bitcoin breaks key $60,000 support level “We see risk of counter-trend up to $49,000 support marking both February breakout, above its peak of March 2022, and its 200-day average,” he told CNBC. “Signs of stabilization here could pave the way for a next leg higher and a definitive breakout to a new all-time high in the coming months or quarters.” Keller said he sees downside risk between $50,000 and $52,000, based on the 61.8% retracement of the first quarter rally and the 200-day moving average. Geoff Kendrick, head of digital assets research at Standard Chartered, echoed this view, saying that bitcoin’s “proper breakout” below $60,000 had “reopened the path to the $50,000 range at $52,000.” Wolfe Research’s Rob Ginsberg said $60,000 worth of bitcoin appears “vulnerable” and $50,000 could be at stake. Bitcoin has traded between $60,000 and $74,000 since mid-March, when the crypto- currency hit new record highs and repeatedly failed to break through. Investors were expecting choppy trading in the coming weeks – now that key catalysts such as the introduction of Bitcoin ETFs in the United States and the halving have passed. “With the last Bitcoin halving now behind us, it is worth noting that Bitcoin often sold off in the month following the halving, but the 12 months following the halving included some of the most bullish rallies in history,” Keller said. “We expect near-term weakness to precede a strong advance toward new all-time highs later in 2024.” —CNBC’s Michael Bloom contributed reporting. Correction: This article has been updated to reflect the correct spelling of Rob Ginsberg’s name.