In a recent analysis by Fomo Factory, expert analysts examined the current bullish and bearish signals in the Bitcoin market, raising concerns about a possible correction. Just a few days ago, Bitcoin hit a historic bullish close, surpassing all-time highs on a weekly, monthly, and quarterly basis. But this euphoria doesn't seem to last long, as a potential economic downturn threatens profits. A key question on investors' minds is whether this setback signals further trouble.
The analyst pointed to the struggle Bitcoin will face in breaking through the $70,000 level, hinting at the possibility of prolonged volatility. Despite the current trend of higher lows, the highs are also lower, indicating market uncertainty.
Explore downside targets and support levels
Analysts delved into potential scenarios and outlined downside price targets for Bitcoin. Key levels to watch include the $60,000 level, where significant support exists, and the Fibonacci retracement level between $52,000 and $56,000. While a decline to $60,000 is plausible, analysts caution against ruling out further correction to the $48,000 to $42,000 range.
This situation is equally dangerous for altcoins, which tend to move in sync with Bitcoin. Because they are robust, they still appear to be susceptible to Bitcoin movements. Analysts suggested that altcoins could fall by 30-40%. Therefore, investors should prepare for volatile times.
However, analysts agreed that this is a bear market. Analysts compared this to past bull markets and emphasized that corrections typically precede further bullish momentum. However, with the halving and a bullish outlook, a rebound remains a possibility.
While acknowledging the possibility of a correction, the analyst cautioned investors to be wary of panic and instead view it as an opportunity to accumulate wealth at a lower price.