Bitcoin Price Forecast Suggests Possible $31,500 Low
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The ongoing challenges facing Bitcoin, the leading cryptocurrency, are evident as it struggles to surpass the critical resistance level of $70,000. This limitation raises concerns about the possibility of a more significant market correction, as indicated by the observations of notable analyst Yonsei_dent.
In a recent analysis shared via CryptoQuant, Yonsei_dent has pointed to a likely bottom for the current market cycle amid a notable decline over recent months. Since October, Bitcoin has experienced a staggering drop of over 45%, with its price plummeting from an all-time high of $126,000 to lows around $60,000.
Yonsei_dent utilized the Supply In Profit indicator, which tracks the proportion of Bitcoin that remains in profit compared to its last movement price. This metric serves as a vital indicator of market cycles, showcasing sharp compressions during market lows and extreme highs as the market approaches peaks.
According to the analyst, Bitcoin’s Supply in Profit was in a bottom zone for six months in 2022, during which time the cryptocurrency reached a high of $69,000 before experiencing a staggering 77% decrease to around $15,500. If a similar duration for the current cycle’s bottom phase is applied, projections indicate a potential drawdown of 70% to 75%, suggesting a price floor could be between $31,500 and $38,000. This indicates a further decline of approximately 41% to 51% from present price levels.
As of the latest updates, Bitcoin’s trading price stands at $63,553, reflecting a decrease of 5.84% in the past 24 hours. The daily trading volume has seen a slight rise of 0.54%, totaling $40.04 billion. The broader market conditions exhibit negative trends on both weekly and monthly scales, with losses of 6.21% and 27.11%, respectively. Unless there is a decisive move by market bulls to reclaim the enduring $70,000 resistance, investor sentiment is likely to remain cautious, leaving prices exposed to potential further declines or extended periods of consolidation.
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Gregory Russell
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