Bitcoin Could Crash Below $55,000, Top Analyst Sounds The Alarm
May 09 2024 - 10:00PM
NEWSBTC
Bitcoin, the leading cryptocurrency, has recently been scrutinized
by several analysts and traders as it struggles to maintain its
market position. Michaël van de Poppe, a recognized figure in the
crypto analysis sector, has recently expressed his concerns
regarding Bitcoin’s current price trajectory. Bitcoin Risks
Dropping to $52,000, Why? Taking to Elon Musk’s social media
platform X, Van de Poppe pointed out that Bitcoin is at the lower
end of its current range, a crucial area for maintaining upward
momentum. Related Reading: Bitcoin’s Bold Bet: Options Traders Eye
$100K Surge By September Van de Poppe warned that if Bitcoin fails
to hold this level, the market could see a downturn, with prices
potentially falling as low as $52,000 to $55,000. This prediction
comes as Bitcoin attempts to stabilize above the $61,000 mark.
Despite efforts to sustain this level, recent market behavior
suggests a bearish trend could be looming. Van de Poppe’s analysis
indicates that failing to maintain the lower range could lead to
significant corrections, affecting investor sentiment and market
dynamics. #Bitcoin is at the range low. This is technically the
area where you’d prefer to see it hold, so the upward momentum
continues, and the range holds. If this doesn’t hold, then we might
expect $52-55K as a potential low on this correction.
pic.twitter.com/j4rWI0Ti7G — Michaël van de Poppe (@CryptoMichNL)
May 9, 2024 Meanwhile, recent data from the analytics firm
IntoTheBlock reveals a noticeable decline in BTC whale accumulation
volumes over the past month. These large investors, holding over
1,000 BTC, have been a stabilizing force in the market,
particularly during price dips. However, the trend of diminishing
whale purchases, especially during recent market corrections,
suggests a decrease in their market influence and potentially a
broader loss of appetite for Bitcoin at current levels. This
pattern could indicate a shift in whale strategy or a broader
market sentiment change, possibly leading to less support for
Bitcoin prices during downturns. BTC Surging Demand vs. Limited
Supply Despite the potential price dip, other market activities
suggest a robust demand for Bitcoin. Samson Mow, a well-known
Bitcoin community figure and former Blockstream CSO, highlighted
the continuous buying from American spot Bitcoin ETFs. According to
Mow, these US ETFs purchase 1,626 BTC daily. Additionally,
MicroStrategy acquires 199 BTC daily, and Tether buys 70 BTC daily.
This significant daily demand, especially in the context of the
reduced supply following the latest Bitcoin halving in April, where
only 450 BTC are created each day, suggests that demand might
significantly exceed supply. Related Reading: Analyst Narrows Down
Timeline For Bitcoin Peak This Bull Cycle Mow emphasized this
imbalance, indicating that the aggregate demand could be
outstripping the available supply by 5 to 10 times, hinting at a
potential upward pressure on prices if this demand persists. U.S.
ETFs are buying 1,626 BTC per day.@MicroStrategy is buying 199 BTC
per day.@Tether_to is buying 70 BTC per day. There are only 450
#Bitcoin mined per day. Total aggregate demand is likely 5-10x
supply. Plan accordingly. ♎️pic.twitter.com/fshInf0Jas — Samson Mow
(@Excellion) May 8, 2024 Featured image from Unsplash, Chart from
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