Bitcoin Price: Why BTC Could Plunge To $60,000 Before Reaching $80,000

As a seasoned crypto investor with a few years under my belt, I’ve learned to keep an eye on regulatory decisions and market sentiment. The proposed Ethereum ETFs have been a hot topic for weeks now, and the recent prediction shift from analysts has sent ripples of excitement through the community.


As an industry analyst, I’ve noticed that the crypto market has resumed its volatile pattern with the SEC’s decision on proposed Ethereum spot ETFs being the key factor in the industry’s wait-and-see stance. Prices surged impressively on Monday following a revision of approval expectations from 25% to 75%. Bitcoin‘s price reached an impressive $72,000, extending its bullish trend that began above $67,000 the previous week.

Ethereum made a notable comeback, bouncing back from its support at $3,000 to reach over $3,700. Similarly, many other altcoins picked up momentum, recouping a portion of their losses that occurred in April and early May due to the renewed optimistic market trend.

If the Ethereum ETF receives approval, there’s a strong possibility that Ethereum will set a new record high price, potentially initiating another altcoin rally. The price of Bitcoin reached a new peak following its approval by the SEC in January.

What’s Next Bitcoin As Bitcoin Price Pulls Back

Bitcoin experienced a gradual pullback from its weekly peak of $72,000 to trade at $67,908 during US trading hours on Thursday. This move has left investors uncertain as to whether the price decline will persist towards $60,000 or if the upward trend will resume, ultimately reaching a new record high near $80,000.

As an analyst, I see a potential positive development: the anticipated approval of spot Ethereum ETFs. This event could instigate investors to increase their exposure towards Bitcoin and prominent altcoins. Consequently, we may witness a significant boost in momentum, potentially leading to a major price surge for these cryptocurrencies in the near future.

After several weeks of continuous withdrawals, Bitcoin ETFs have recently seen a reversal, reporting net inflows totaling $153 million on May 22nd. This indicates a shift in market sentiment toward the positive.

Bitcoin Price: Why BTC Could Plunge To $60,000 Before Reaching $80,000

BlackRock and Fidelity were the top two ETFs that attracted the most new investments, with inflows of $92 million and $75 million respectively. Ark Invest drew in a relatively small amount of $3 million, while all other ETFs except Grayscale saw no new investment during this period. Grayscale is still experiencing outflows, having recorded $16 million worth on Wednesday, but the size of these outflows has noticeably decreased.

Bitcoin Price Analysis: Assessing The Technical Structure As Price Drops

The current adjustment in Bitcoin’s price is causing tension at key support levels. At present, a decline below $67,000 seems imminent during the US trading hours. The RSI’s subsequent retreat underscores the pessimistic short-term forecast.

As an analyst, I would interpret the current reading of the indicator at 54, which is a weekly decrease from its peak of 66, as signaling a neutral zone. This assessment could be seen as justification for initiating a short position in Bitcoin or closing out open options. Consequently, this action may contribute to the ongoing downward pressure in the market.

Bitcoin Price: Why BTC Could Plunge To $60,000 Before Reaching $80,000

Areas beneath the $67,000 mark are reinforced by several indicators: the 20-day Exponential Moving Average (EMA), the downward trend line, and the 50-day EMA. If selling pressure persists, a potential drop to $60,000 remains a possibility.

As a crypto investor, I believe the resumption of the bullish trend hinges on three key factors: firstly, the approval of spot Ethereum ETFs; secondly, the support holding firm at $67,000; and thirdly, the ability to regain ground above $72,000. Once we surpass this level, the bullish momentum could pick up steam, potentially propelling Ethereum towards $80,000 – a new benchmark for the ongoing bull run. With eyes on reaching $100,000 by 2024, this upward trajectory presents an exciting opportunity for investors in the crypto space.

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2024-05-23 22:30