These days, Bitcoin has been having a lot of issues. At $60,000 and $56,500, it broke through important aid levels. A lot of people who use Bitcoin in decentralized finance (DeFi) systems to borrow money and put up the asset as collateral might find this scary at first.
Even though prices have dropped a lot, on-chain experts say the market is surprisingly quiet. When asked about X, one of these experts said that the market hasn’t yet given in to fear and panic. As long as there aren’t more addresses showing losses, the Bitcoin Daily Realized Profit Loss ratio shows that the market can handle more drops. This could mean that people are selling quickly.
Bitcoin’s Potential $47,000 Drop
The expert said that the lack of “panic selling” bars shows that buyers are still taking everything in. The market could still drop as low as $47,000, which seemed more dangerous three weeks ago when Bitcoin was worth $70,000. Prices have now dropped below $56,500.
He says that the market should change more slowly and in a more organized way during this downturn. A lot of people want to sell Bitcoin as of July 5. It has dropped almost 30% from its all-time highs.
Bitcoin went up to $73,800 in the first quarter of 2024. Today’s drop below $56,500 is the beginning of a new phase. It ends the range that ran from March to May 2024 and starts a bear breakout form.
Bitcoin is in a bear exit, which means sellers are in charge. This means experts think it will lose even more value. Right away, $50,000 and $45,000, which are the highs from January 2024, can be used as support.
The drop has caused some buyers to switch to stablecoins, but another expert sees it as a chance to get Bitcoin for less. The expert talked about a number of important reasons why long-term bullish predictions are likely to come true.
One of these is that spot Bitcoin exchange-traded funds (ETFs) are now available, and the other is that U.S. rules are clear before the election. Bullish BTC traders also see the FTX members’ upcoming $16 billion payout as a good sign.
Following last week’s sell-off, the market needs to see a rise in new addresses. This shows that buyers are interested in and want to buy again. Prices are still going down, and not many new addresses are being made right now.
